In the global business, competitiveness has become a buzzword and to achieve it every enterprise has been looking for the cost reduction methods in production and marketing of goods internationally. One of such element on this account is getting the international VAT refunds from the foreign tax authorities which knowingly or unknowingly is not being claimed by many firms because of complicated rules, regulations and time consuming and cumbersome refund systems. The expenses on VAT, therefore, are normally included in the cost of production and marketing, which otherwise can be saved by reclaiming VAT from the foreign tax authorities to increase profitability of the units engaged in international business. The paper gives the international VAT coverage and background of VAT in EU, explains the VAT’s concept, describes its common features the world over, gives illustrative VAT refund rates and policies, states advantages of outsourcing of such VAT refunds and prescribes these refunds as source of cost reduction to be competitive in the international business. Attempts have been made in this paper to create awareness of VAT refund system amongst the managers/executives employed or inspiring to join the firms engaged in international business, so that they can claim the legal dues of their firms from the foreign tax authorities without going through complicated procedures and spending their precious time and money by availing the services of VAT Recovery Agencies i.e. to get the VAT refunds hassles free. And for that, paper also provides brief details of selected VAT recovery agencies that may be approached for further information and their services.

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