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Dec 29, 2022Guide to Reclaiming VAT for Business Trip Expenses
The Blue dot Team
The Blue dot Team
As the Covid pandemic passes, business travel is back on the rise. Business travel involves paying VAT that can be potentially reclaimed. Unfortunately, the complexity involved in VAT reclaim makes it difficult for businesses to maximize their reclaim.
One barrier to VAT reclaim is invoices submitted with incomplete or incorrect information. The company may choose to reimburse the employee for such expenses, but the company will be unable to reclaim VAT that is submitted with a faulty invoice.
Here at Blue dot, we came up with a few guidelines to help companies streamline their business trip VAT reclaim.
Make it a company rule to accept original invoices only. An invoice should have the word “invoice” clearly displayed on the top. Do not accept proforma invoices, copies, or credit card slips. Employees know to always request an original invoice and a VAT invoice.
Make it a company policy to correctly display the legal name and address of the company. Often, companies have an improper name on their invoices – such as the name of a sub-group or department. These are not valid for VAT reclaim.
Now that you’ve gathered information and can formulate a solid business trip expenses policy for your company, create a file with those policies and meet with the department heads whose teams incur the most business trip expenses (often sales and customer success).
A good policy that no one knows about cannot be enforced. Communicate the rules of the game and set standards for an increase in compliance. Expect to speak one-on-one with people in order to change bad invoice habits.
If you are looking to increase VAT reclaim while maintaining effortless compliance, Blue dot VATBox can help. VATBox has helped Michelin recover over €3,000,000. VATBox streamlines the global VAT recovery process, adding a layer of visibility, compliance, and data integrity.
Get a head start on 2023 by automating your taxable employee benefits with Blue dot!
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