The United States Army

04/26/2024 | News release | Distributed by Public on 04/26/2024 03:09

IMCOM Europe plans expansion of VAT refund program in Germany

[Link] On May 1, a pilot program expanding Value Added Tax refunds to micro-purchases opens to more eligible patrons in U.S. Army Garrisons Wiesbaden and Bavaria, with plans to eventually include all of Germany. (Photo Credit: U.S. Army)VIEW ORIGINAL

WIESBADEN, Germany - U.S. Army Installation Management Command-Europe, the proponent for the U.S. Forces Value-Added Tax (VAT) refund program in Germany, continues to implement improvements to this program.

In March 2024, IMCOM-Europe began pilot testing a mobile App, called Remonon, enabling customers to use one VAT form each month to receive a refund of a portion of the aggregate VAT value from micro purchases. IMCOM-Europe entered into a sponsorship agreement with a company that developed and will manage the app.

"Together with the company, we initiated the pilot in March and are expanding it in phases, based on the app developers' ability to address any technical issues and to scale the app to be ready to accommodate more customers," said Jeff Wertz, IMCOM-Europe Assistant Chief of Staff for Family, Morale, Welfare and Recreation.

The first phase of the pilot included approximately 50 members of the U.S. Army Garrison Wiesbaden community will expand May 1 to include an additional 100 patrons from Wiesbaden and an additional 100 eligible users at USAG Bavaria.

"We included a broad cross section of our population in the first phase of the program, to give us the best view of how we can serve the whole community," Wertz said, adding that the pilot group includes single and married Soldiers, civilians, together with their authorized dependents.

The app enables customers to upload one VAT form each month to receive a refund of the aggregate VAT value from several micro purchases up to 240 euro gross each throughout that month. Each month's VAT form can be used for a total of up to 2499 euro, the current limit.

"If we think about adding up all the value-added tax we pay, down to the smallest micro-purchase, the quick trip to the bakery or the coffee shop, or the grocery store, this new app provides our community members the chance for significant money coming back to them," Wertz said.

Customers will receive refunds of 14 and four percent for items with Value Added Tax of 19 and seven percent, respectively.

"That's 14 and four percent more than people have been receiving, having not had the ability to bundle several small receipts onto a single form," Wertz said.

The process of creating and developing the app, together with the critical step of obtaining the German government's approval, took about 18 months, according to Wertz.

"To ensure only authorized patrons are using it, the app will only record credit-and-debit card transactions; however, some case-by-case exceptions will be possible, such as when a vendor does not accept cards," he said.

IMCOM-Europe will announce the launch the of the app's full availability across IMCOM-Europe to end the pilot when developers and VAT program management are satisfied that full service is feasible. Once they sign up for the app, customers will need to address technical issues with the company, not the garrison VAT office.