For years, corporate travel programs have focused on room rates and amenities during their annual negotiations with hotels. But the experts at business travel consulting firm Advito say now’s the time to add another topic to the conversation: VAT reclaim.
Value-added tax, or VAT, is included in hotel, dining and car rental bills and more when travelers go to countries that assess the tax. It can be a significant expense: VAT rates can be as high as 25%. The good news is most T&E-related VAT is eligible for reclaim. The bad news: In the past, it’s been hard to collect. But automation has made VAT reclaim for European Union transactions much easier. BCD Travel has partnered with VAT-recovery firm Taxeo to automate the process.