VAT Refunds for U.S. Medical and Pharmaceutical Companies

Why VAT Refunds Matter for U.S. Medical and Pharma Firms

U.S. pharmaceutical, biotech, and medical device companies now run genuinely global operations. Clinical trials, investigator meetings, scientific congresses, lab testing, and product demonstrations are routinely held in Europe, the Middle East, and other specialist hubs.

Almost all of these activities attract value added tax. Registration fees for congresses, hotel stays for investigators, laboratory testing, exhibition stand services, and equipment demonstrations are all commonly subject to VAT at rates that are often much higher than U.S. sales tax. On a single large European congress budget, the VAT alone can reach tens of thousands of dollars.

In many cases that VAT is recoverable for U.S. businesses under non-resident refund schemes. The difficulty lies in navigating multiple country rules, keeping invoices compliant, and meeting deadlines while internal teams are focused on scientific and commercial priorities rather than tax administration. As a result, global estimates suggest that life sciences businesses leave substantial VAT unclaimed each year.

The combination of EU 13th Directive refunds, the UK’s Overseas VAT Refund Scheme, UAE visitor refund mechanisms, and other national programmes makes this one of the most important but underused opportunities for U.S. medical and pharma companies. With 2025 bringing further digitalisation of filing systems and stricter documentation standards, a more structured approach is essential.

This guide sets out where VAT refunds are available, which costs usually qualify, what evidence you need, where claims most often fail, and how a specialist process can turn these costs into additional budget for your pipeline.

The VAT Refund Imperative for Life Sciences

Clinical development and medical technology now rely heavily on cross-border collaboration. A high proportion of global clinical trials involve overseas sites and events. Major oncology, cardiology, and specialty congresses are held in EU capitals, the UK, Switzerland, the UAE, and Canada. Specialist lab capacity is often located abroad.

Each of these activities generates VAT exposure for U.S. companies. Typical standard rates in Europe sit in the high teens or low twenties as a percentage of the net cost. Hotel VAT, local services, and technical support can quickly become a significant line in the budget.

VAT systems are designed so that tax should not be a final cost where the service is effectively “exported” or used by a non-resident business for activities outside the jurisdiction. Refund schemes apply this principle in practice. Under reciprocity rules, U.S. businesses can claim refunds in many countries even though there is no federal VAT in the United States.

The impact is real. For a series of major congresses, trials, and lab programmes, the amount of reclaimable VAT can be equivalent to a sizeable project budget or an early-stage trial. It is one of the few areas where careful administration produces a direct, predictable cash benefit.

Common Refundable Costs for Medical and Pharma Companies

Most claims for life sciences businesses fall into a small number of categories. The underlying rules vary by country, but the patterns are consistent.

1. Medical Congress and Conference Registration Fees

Registration fees for scientific congresses and professional medical conferences almost always include VAT. Examples include oncology meetings in Spain, cardiology events in the UK, or large speciality congresses in Germany, France, and the Nordic countries.

Where the fees are invoiced to a U.S. business and the congress is attended for professional purposes, these charges usually qualify as business services under non-resident refund rules. That applies whether you send a small specialist team or a large delegation as a sponsor.

Practical points:

• Ensure the registration invoices are addressed to the U.S. entity and not to individual delegates

• Keep congress programmes, sponsorship contracts, or scientific agendas that show the business purpose of attendance

• Where multiple countries are involved, track which portion of the spend relates to each jurisdiction so that claims go to the right authority

The amounts involved in large congress programmes can be significant. For a company attending several major events in a year, the recoverable VAT can fund further scientific engagement.

2. Hotel Accommodation for Congresses and Investigator Meetings

Hotel costs associated with congresses, investigator meetings, advisory boards, and trial start-up sessions are often one of the largest components of VAT-bearing spend.

In many jurisdictions, VAT on hotel accommodation used for business purposes by non-resident companies can be recovered under the usual conditions. This includes stays for medical staff and investigators where the purpose is directly linked to trials, scientific exchange, or commercial meetings.

Practical points:

• Use corporate bookings that show the company as the customer and include a clear VAT breakdown

• Link room nights to specific meetings or events through agendas, invitations, or trial documentation

• Separate any personal extensions to stay or family travel so these do not contaminate the claim

When managed carefully, accommodation VAT across a portfolio of congresses and investigator meetings adds up to a material reclaim each year.

3. Laboratory Testing, Certification, and Specialist Technical Services

Life sciences businesses also incur substantial VAT on laboratory testing, certification work, and other technical services carried out overseas. Examples include:

• Good Laboratory Practice testing in EU member states

• Biocompatibility or performance testing in specialist labs in the Netherlands, France, Germany, or the Nordics

• Certification of devices in Israel or other technology hubs

For non-resident businesses, these services are generally treated as business inputs that qualify for VAT refunds, provided the service is used for activities outside the country of supply.

Practical points:

• Ensure invoices describe the nature of the testing or certification clearly and reference the relevant project or regulatory pathway where appropriate

• Avoid generic invoice descriptions that simply refer to “services” without detail

• Keep trial protocols, regulatory filings, or study documentation that shows the link between the lab work and your pipeline

High-value lab programmes are often one of the largest single categories of recoverable VAT for medical device and biotech companies.

4. Exhibition Booths and Technical Services at Scientific Events

Many medical and pharmaceutical companies exhibit products and research at major trade fairs and scientific exhibitions. Exhibition stand construction, audio-visual equipment, rigging, electricity, internet, and related technical services usually attract VAT.

For non-resident exhibitors, these costs typically qualify as business input services associated with promotion and marketing, and they are frequently recoverable.

Practical points:

• Ensure stand build and technical services are contracted and invoiced to the U.S. entity

• Keep exhibition contracts, floor plans, and visual evidence of the stand for the event file

• Match supplier invoices to the event and venue clearly so that the tax authority can follow the trail easily

As exhibition activity resumes and grows, stand-related VAT often becomes a predictable source of refunds for seasonal event programmes.

5. Equipment Demonstrations and Sample Testing Abroad

Demonstration equipment and samples used at overseas sites form another area where VAT can often be recovered. Examples include:

• Device demonstrations in hospitals or medical centres abroad

• Short-term installation of equipment for evaluation

• Shipment of high-value samples or prototypes for testing and then export

Where goods are imported, used for demonstration or testing, and then exported again, there may be both customs and VAT implications. Many regimes allow VAT refunds on such goods provided that export can be proven and local use is strictly limited.

Practical points:

• Use clear documentation for temporary imports, including customs procedures and any carnet documents where applicable

• Obtain and retain export records when the equipment or samples leave the country

• Keep records linking the demonstration or testing to specific studies, procurement decisions, or regulatory work

This area is technically sensitive and benefits from early planning between tax, logistics, and clinical teams.

Key Countries and Refund Regimes for Life Sciences

Medical and pharmaceutical activities cluster in particular jurisdictions. Several of these operate well-developed VAT or GST refund systems for non-resident businesses.

European Union member states
The EU 13th Directive provides a framework for VAT refunds to businesses established outside the EU. For U.S. life sciences companies, this covers congress fees, hotel stays, laboratory services, exhibition stand costs, and many other inputs. Claims are made country by country to the tax authority where the VAT was incurred, generally for a calendar year, and must be submitted by a set deadline, often 30 September of the following year. Minimum claim amounts apply in many member states.

United Kingdom
The UK operates the Overseas VAT Refund Scheme under HMRC Notice 723A. Non-UK businesses that are not VAT registered and do not have a fixed establishment in the UK can reclaim VAT on eligible business expenses, including congresses, medical events, hotels, laboratory services, and exhibition participation. Claims are made for a prescribed year from 1 July to 30 June and must reach HMRC by 31 December.

Switzerland
Switzerland is an important location for medical congresses, pharmaceutical headquarters, and research activities. Foreign businesses can recover Swiss VAT on business expenses where conditions are met, including proof of business purpose and the absence of a Swiss establishment. Congress fees, hotel stays, and certain demonstration or technical services can potentially qualify.

Norway
Norway hosts specialist conferences and offers advanced laboratory and testing facilities. Non-resident businesses can apply for VAT refunds on eligible business expenses provided there are no taxable supplies in Norway. The standard VAT rate is relatively high, so refunds can be substantial for trial-related meetings and testing.

Israel
Israel is a recognised technology hub and a location for device and pharmaceutical development. VAT rules allow for zero-rating of exports and, in some cases, refunds of VAT on services provided to non-resident businesses. Testing and certification carried out for overseas operations can fall within this scope, subject to documentation.

Canada (FCTIP)
Canada’s Foreign Convention and Tour Incentive Program provides rebates of part of the GST or HST on eligible convention facilities and related supplies for foreign organisers. U.S. medical and pharmaceutical companies that host or sponsor scientific meetings and conventions in Canada may be able to recover a portion of the indirect tax paid, subject to the programme’s detailed rules.

United Arab Emirates
The UAE, and Dubai in particular, has become a major venue for healthcare events such as Arab Health. Visitor refund schemes allow non-resident businesses to reclaim UAE VAT on certain expenses, including hotel accommodation and some business services, where conditions are satisfied and thresholds are met.

Across all of these jurisdictions, the fundamentals are consistent. The business must be non-resident and non-registered for VAT. The expenses must be for business purposes. Documentation must be complete and the claim must be submitted by the relevant deadline.

Documentation: Building a Claim that can withstand Audit

Life sciences VAT claims are often large and visible, so tax authorities expect robust documentation. Many rejections arise not because the cost is ineligible, but because the evidence is weak.

Key elements usually include:

• Invoices that are addressed to the U.S. company, show the supplier’s VAT or GST registration number, and clearly state the VAT amount

• Detailed descriptions of the services or goods, for example congress registration, laboratory testing, exhibition stand construction, or device demonstration

• Event documentation such as congress programmes, meeting agendas, sponsorship agreements, and attendance lists that show the business purpose

• Clinical or regulatory documentation that links laboratory services and testing to trials or submissions

• Export and logistics records where goods are moved into and out of a jurisdiction, such as airway bills, customs declarations, and courier tracking reports

For some countries, additional formalities apply. The UK, for example, requires a certificate of status issued by the tax authority in the claimant’s home country to confirm that the business is registered and trading. Canada’s convention rebate scheme has its own documentation form and supporting requirements.

In practice, the strongest claims come from companies that treat VAT documentation as part of the standard project or event file from the outset rather than an afterthought at the end of the year.

Common Reasons Pharma VAT Claims Are Rejected

The same issues appear repeatedly in rejected claims for medical and pharmaceutical businesses.

Typical problems include:

• Invoices issued without a valid VAT number, or addressed to individual attendees or overseas affiliates rather than the U.S. entity

• Missing or incomplete documentation for congresses, such as agendas or contracts, making it hard to show business purpose

• Hotel invoices that mix personal stays with business nights without clear apportionment

• Laboratory invoices that are too vague about the nature of the tests or their purpose

• Claims submitted after the statutory deadline for the jurisdiction in question

• Inadequate evidence for the export of equipment or samples, where that evidence is needed

These issues are usually preventable through clearer internal guidance for event organisers and trial teams, tighter coordination between finance, tax, and clinical operations, and earlier review of invoices and documentation.

How Antravia Supports Medical and Pharma VAT Recovery

Antravia works with U.S. medical, pharmaceutical, and device companies to bring structure to this area. Our role is to help ensure that VAT paid on overseas activity does not become a permanent cost where refunds are available.

In practice, our work typically includes:

• Reviewing past and current congress, trial, laboratory, and exhibition spend to identify where refunds are possible

• Working with event organisers, scientific associations, hotels, and laboratories to correct or reissue non-compliant invoices

• Coordinating documentation from internal teams, including agendas, protocols, and logistics records, so that claims are complete and consistent

• Preparing and submitting claims under the relevant schemes in the EU, UK, Switzerland, Norway, Israel, Canada, the UAE, and other jurisdictions where appropriate

• Monitoring deadlines and following up with tax authorities until refunds are processed

• Providing training and guidelines for internal teams so that future events and projects are set up with VAT recovery in mind from the start

Fee models can be tailored, including contingent arrangements where part of our compensation is linked to successful recoveries.

Conclusion: Use VAT Recovery to Support your Pipeline

For U.S. medical and pharmaceutical companies, VAT on international congresses, trials, testing, and exhibitions is an area where careful administration can produce a direct financial return. These refunds do not require new products or additional sales, only better control over documentation and process.

If your organisation regularly spends on overseas medical meetings, laboratory programmes, or device demonstrations, it is sensible to review the VAT position. Since many schemes operate with fixed deadlines and look-back limits, there is value in acting sooner rather than later.

You can begin with a targeted review of a recent congress, trial, or lab contract to see what might be recoverable, then build from there into a more systematic approach.

At Antravia, we specialize in guiding U.S. businesses through these intricacies to maximize returns. Initiate your 2025 claim assessment today with our complimentary eligibility review, just upload a sample invoice for tailored insights. Contact us

Updated: 14 November 2025. This guide is general information only. Always seek advice tailored to your specific facts, jurisdictions, and regulatory environment.

See our specialist pages
Global VAT Reclaim - Recover the Tax you’ve already paid abroad
UK VAT Reclaim for U.S. and Global Businesses
EU VAT Reclaim for U.S. and Global Businesses
UAE VAT Reclaim for U.S. and Global Businesses
International VAT Reclaim

References

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7. World Congress. (2023). Rebate Application for Conventions | WC12. https://www.wc12canada.org/wp-content/uploads/2023/06/Rebate-Application-for-Conventions.pdf

8. Fintua. (2025). Pharmaceutical Companies are losing Millions in Unclaimed VAT. https://fintua.com/blog/pharma-vat/

9. EFPIA. (2024). The Pharmaceutical Industry in Figures 2025. https://www.efpia.eu/media/uj0popel/the-pharmaceutical-industry-in-figures-2025.pdf

10. KPMG. (2025). Business visitors refund scheme. https://kpmg.com/ae/en/insights/tax-insights/business-visitors-refund-scheme.html

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Disclaimer:
Content published by Antravia is provided for informational purposes only and reflects research, industry analysis, and our professional perspective. It does not constitute legal, tax, or accounting advice. Regulations vary by jurisdiction, and individual circumstances differ. Readers should seek advice from a qualified professional before making decisions that could affect their business.
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