vat input credits

when you buy from EU suppliers, they charge you VAT. you can get that money back.

what input VAT is

you buy Hetzner hosting for €100. Hetzner adds 19% German VAT: €119 total. that €19 is your input VAT - money you paid to a supplier that went straight to the tax office.

YOU              HETZNER          GERMAN TAX OFFICE
 |                  |                  |
 |-- €119 --------->|                  |
 |  (€100 + €19)   |                  |
 |                  |-- €19 VAT ------>|
 |                  |                  |
 |  you can get this €19 back         |

this works for any business purchase from a VAT-registered EU or UK supplier: hosting, software subscriptions, professional services, tools.

two ways to get it back

way 1: offset on your VAT return

if you sell via Stripe to EU/UK customers, you're already VAT-registered and filing quarterly returns. input VAT is just a line on that return.

QUARTERLY RETURN:

  output VAT (Stripe sales):     €200
- input VAT (your purchases):    €190
= net you owe:                   € 10

you only pay the difference. if your purchases exceed your sales in a quarter:

  output VAT:    € 50
- input VAT:     €190
= net:          -€140  ← tax office refunds you €140

this is the simplest path. no extra paperwork beyond what you're already filing.

way 2: 13th Directive refund

if you don't have Stripe EU sales (only App Store, or no EU sales at all), you're not VAT-registered and don't file returns. you can still reclaim input VAT through a standalone refund claim. this works for any non-EU business - US, Canadian, Australian, etc.

you submit your invoices to the tax office: "I'm a non-EU business, I paid €190 VAT on these purchases, please refund." they review the invoices and pay you back.

this is more paperwork and slower (can take months), but you get the same money.

which way applies to you

have Stripe EU/UK sales → way 1. you're already filing returns, input VAT goes right on there.

no Stripe EU/UK sales (Apple-only or no EU sales) → way 2. standalone refund claim.

have both Stripe and Apple sales → way 1. Apple sales are irrelevant to your return; input VAT offsets against Stripe output VAT.

the full flow: Stripe sales + EU purchases

HETZNER         YOU              STRIPE CUSTOMERS       TAX OFFICE
   |              |                     |                    |
   |<-- €119 ----|                     |                    |
   |  (€100+€19) |                     |                    |
   |              |                     |                    |
   |--- €19 VAT ------------------------------------------>|
   |              |                     |                    |
   |              |<-- €240 ------------|                    |
   |              |   (€200+€40 VAT)   |                    |
   |              |                     |                    |
   |              |    QUARTERLY RETURN:                     |
   |              |    output:  €40                          |
   |              |  - input:   €19                          |
   |              |  = net:     €21                          |
   |              |                                          |
   |              |--- pay €21 ---------------------------->|

you collected €40 from customers, paid €19 to Hetzner. you only send €21 to the tax office. the €19 stays in your pocket.

the full flow: Apple-only + EU purchases

HETZNER         YOU              APPLE         CUSTOMERS    TAX OFFICE
   |              |                |               |             |
   |<-- €119 ----|                |               |             |
   |  (€100+€19) |                |               |             |
   |              |                |               |             |
   |--- €19 VAT --------------------------------------------->|
   |              |                |               |             |
   |              |                |<-- €240 ------|             |
   |              |                |  (€200+€40)   |             |
   |              |                |-- €40 VAT -------------->|
   |              |<-- €200 ------|               |             |
   |              |  (revenue)    |               |             |
   |              |                                              |
   |              |  REFUND CLAIM: "paid €19, here are invoices" |
   |              |                                              |
   |              |<-- €19 refund -------------------------------|

Apple handled the customer VAT. you file a separate claim for your €19. different paperwork, same €19 back.

is it worth it

the question is whether the VAT you'd reclaim justifies the registration and filing effort.

  • €5,000+/year in EU purchases → €1,000+ VAT to reclaim → definitely worth it
  • €2,000-5,000/year → €400-1,000 → probably worth it
  • under €1,000/year → under €200 → probably not worth the paperwork

if you have Stripe EU sales, you're already registering and filing. input credits cost zero extra effort - always claim them.

if you're Apple-only, the 13th Directive process adds work. worth it only if your EU purchases are meaningful.

what qualifies

  • business expenses only (not personal)
  • from VAT-registered suppliers (they show a VAT number on the invoice)
  • must have a valid invoice showing VAT amount separately
  • common eligible expenses: hosting, software subscriptions, professional services (lawyers, accountants), dev tools
Version 4 · Created Feb 16, 2026 · Modified Jul 20, 2026
chatgpt claude