Remonon, an app that reimburses value-added tax for U.S. personnel in Germany, is slated to launch for all eligible users Jan. 1, 2025, according to a recent U.S. Army Installation Management Command-Europe statement. (U.S. Army)
WIESBADEN, Germany — A smartphone app that makes it easy for Defense Department personnel in Germany to get tax rebates for many purchases will debut for all eligible users at the start of the new year.
The German app Remonon, which was tested this year via a pilot program at U.S. military bases in various parts of the country, has a full launch date of Jan. 1, U.S. Army Installation Management Command-Europe said in a statement Friday.
Remonon provides refunds of the value-added tax paid on “micropurchases” by bundling them into monthly batches.
Users scan and upload credit card receipts under 240 euros from German vendors, along with a $10 VAT form for total purchases under 2,500 euros, to consolidate what they’ve bought.
Some cash receipts are also accepted in the event the German vendor does not take electronic payment.
In addition to launching Remonon, the command plans to automate the legacy VAT program, allowing customers to purchase, download and submit VAT forms electronically, according to the statement.
Under the current system, customers purchase hard-copy forms at VAT offices. The forms cost $10 for purchases up to 2,500 euros and $100 for purchases over 2,500 euros.
IMCOM-E couldn’t provide further details Monday regarding how a digital VAT form system would work at the user level for purchases with local vendors.
The command partnered with the Grafenwoehr-based Novat to launch a Remonon pilot program in March with a pool of about 50 U.S. personnel in Wiesbaden. The program expanded to include trial participants elsewhere over the past eight months.
Emily Milligan, a Remonon user in Wiesbaden, said her family has saved about 120 euros per month for the past six months.
“Their customer service is extremely responsive and thorough,” Milligan said. “I would encourage everyone to get the app. We’ve had a great experience, and again it’s money we never would have tried to recoup in another way.”
Novat founder and CEO Lukas Weber said approximately 1,700 households had registered for the app as of Monday. The company is processing claims for 750 households for November, Weber added.
To date, Remonon has processed about $2.1 million worth of receipts from German vendors, resulting in over $160,000 in tax refunds, according to Weber.
“I want to extend my heartfelt thanks to the pilot participants for their invaluable feedback and cooperation,” Weber said Monday. “Their insights have directly shaped improvements.”
Many of those improvements revolved around how the artificial intelligence software, which does the heavy lifting for the app, reads and interprets the phone-scanned receipts submitted.
Remonon users can also upload receipts for online purchases made with electronic payment methods such as PayPal and Apple Pay, as long as the invoices reflect Novat’s billing address and payments are issued to German companies’ domestic bank accounts.
Some users have had online receipts rejected from Amazon.de because the payments were processed through Luxembourg, creating tax compliance complications, according to a recent message on the platform.
People new to Remonon will need to register with their local VAT-relief offices and have a bank account with an IBAN to use the app. Refunds amount to 14% and 4% for items with VAT of 19% and 7%, respectively.
The service fee deducted by the app accounts for the difference between the percentages for refunds and purchases.
In the longer term, Novat is developing other services for U.S. military communities in Germany, including work with Mastercard to create app-integrated banking and credit card services offering competitive foreign exchange rates, Weber said.
