Discover the value of foreign VAT reclaim

Countries across the globe apply value-added tax to many of the services business travelers use most: meals, hotels, car rentals and more. In fact, VAT accounts for roughly 5% of total foreign travel spend.

Countries across the globe apply value-added tax to many of the services business travelers use most: meals, hotels, car rentals and more. In fact, VAT accounts for roughly 5% of total foreign travel spend.

Businesses usually are entitled to recover a significant portion of VAT. Yet all too often they don’t. Even if your company is among the few actually recovering VAT, you still may be letting much of it go unclaimed.

VAT Reclaim: Don’t Leave Money on the Table, a new paper and infographic from BCD Travel, explains just how much money is hidden in unclaimed VAT—and how companies can efficiently and affordably recoup it.

The main reason businesses leave VAT-related savings on the table is that reclaiming the tax is a confusing, bureaucratic process. Historically, even when companies have submitted claims, 40% of invoices were non-compliant.

BCD Travel estimates that a company spending €5 million per year on foreign travel could easily be losing €300,000 by failing to go after VAT. And that’s a conservative figure.

The good news is that managing foreign VAT is becoming easier. What was once a cumbersome manual process is now automated—meaning it’s more efficient, accurate and affordable. That gives you a chance to uncover previously unrealized savings for your company.

BCD Travel has partnered with Taxeo as its VAT recovery partner for European Union transactions. Through Taxeo’s innovative automation, hotels, car rental companies and other suppliers sign up for a unique paperless invoicing process that’s VAT-compliant. Here’s how Taxeo is reshaping VAT reclaim:

Before: manual paper process

Suppliers give paper invoices to travelers. Travelers must then submit them as part of the expense-reimbursement process. Companies compile the invoices, sort them by country and undergo the complicated task of submitting VAT-recovery applications.

After: automated paperless process

Affiliated suppliers automatically send fully itemized digital invoice data to Taxeo , where VAT-compliant e-invoices are automatically created. Taxeo submits VAT reclaims to the electronic VAT portals of the appropriate EU taxing authorities. Each authority verifies the claims and pays the recoverable VAT to Taxeo. Taxeo forwards the recovered VAT (minus its fee) to the client and also sends electronic folio data that can be used to track and report on traveler spend.

The bottom line: This combination of technology, expertise and economies of scale ensures greater foreign VAT recovery than even large multinational businesses can accomplish on their own.

Want to know more about VAT reclaim? Download the full VAT Reclaim paper and infographic. Then ask your account manager how BCD Travel can help you recoup the money you’re currently leaving on the table.

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