The United States Army

11/15/2024 | News release | Archived content

IMCOM Europe rolling out full availability of VAT app across Germany

[Link] The new micro-purchase Value-Added Tax (VAT) App program will be available to all authorized VAT program users in Germany at the beginning of the year to consolidate their small purchase receipts on one VAT form each month. (Photo Credit: Mark Heeter) VIEW ORIGINAL

WIESBADEN, Germany - Following the successful completion of a pilot program that began in March, U.S. Army Installation Management Command-Europe will transition to full implementation of the new micro-purchase Value-Added Tax (VAT) App program across Germany at the beginning of the year. The rollout will allow all U.S. VAT authorized users to consolidate their small purchase receipts on one VAT form each month.

This new VAT program was developed through an agreement with NOVAT GmbH, the company that developed and manages the app, called Remonon. Over the first 8 months of the pilot, IMCOM-E worked with Host Nation Officials and NOVAT to improve the app's interface and functionality. In that time, roughly $150K, an average of $91 per month, per household of taxes has been returned to customers, according to officials with IMCOM-Europe, which oversees the VAT program in Germany.

The pilot allowed the developer to make minor modifications to the app and has been an overall success, with both VAT offices and customers excited to have this additional program available to them, said Jeff Wertz, IMCOM-Europe Assistant Chief of Staff for Family, Morale, Welfare and Recreation.

"The pilot was successful. It began with a small number of users in one garrison, and we have increased the number of users and number of participating garrisons and Air Force Bases each month of the pilot. We now look forward to making this program available to all eligible customers in Germany by January 1," said Tommy Mize, IMCOM Europe Director.

Over the course of the next six weeks, the number of authorized users of the App will increase as NOVAT GmbH increases their capacity to serve all authorized users in Germany. Customers can download Remonon at the App Store or Google Play and sign-up for an Individual VAT Number (IVN) from garrison VAT offices.

The micro-purchase app allows customers to obtain easy tax relief on small, everyday purchases for which the current VAT system was not practical. As an example, someone spending 15 or 20 Euros for a purchase at a German vendor might not use a $10 VAT form to save a couple of dollars on that transaction. However, with the app, monthly receipts for all small purchases can be uploaded individually into the app and combined for cumulative tax savings using one VAT form.

The sponsor and family members can then upload multiple receipts with a maximum individual value of 240 Euros each, up to a total of 2,499.99 Euros per household per month. "If we think about all the value-added tax we pay for routine purchases in Germany such as, bakery or the coffee shop, the grocery store, or even parking fees, this new app provides our community members the ability to recoup taxes paid on these items. Over the past eight months, thousands of dollars have returned to customers who might never have realized there was VAT embedded in those small purchases." Wertz explained.

The success of the pilot was further validated as available IVNs have gone fast during the initial phases. The U.S. Army Garrison Wiesbaden VAT office assigned IVN allocations within a day or two of receiving them, said Rebecca Samsa, VAT office support services supervisor. "It's basically been word of mouth, as people love the savings on purchases they would normally not have gotten without the app."

In addition to this new VAT App program, IMCOM-E plans to automate the legacy VAT program used for larger purchases over the course of the next year. This legacy program allows customers to purchase hard copy VAT forms at VAT offices for $10 for use on purchases up to 2500 Euro and for $100 for purchases over 2500 Euro. This automation will allow customers to pay for, download and submit VAT forms to VAT offices electronically. This will streamline the process and enhance customer experience for increased ease of use, according to Wertz.

To register to receive an IVN and begin using the app, and for additional questions about using the app, customers should contact their garrison VAT office.