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managers to recoup expenses
due to the control, visibility and rich spending data – cash payments are also eligible for VAT reclaim.
In addition to the seamless integration with existing T&E systems, companies also benefit from easy setup. Depending on the size of the business and the number of subsidiaries, setup usually takes just a few hours and can usually be handled by the banking provider.
AN INTEGRAL PART OF BUSINESS PLANNING VAT will almost certainly continue to spread in the coming years. This growth means that any business with international expenses should be leveraging VAT-reclaim solutions. For companies considering activities in new regions or territories, VAT reclaim should be an integral part of business planning from the outset.
transport or car rental, whereas Germany does. One-fifth of hotel spend is reclaimable in the UK, but only 7% is in Germany and 10% in Italy.2
The UK and Germany allow 20% of
restaurant spending to be reclaimed, though France and Italy only allow 10%.2
SAVE TIME AND COSTS, WHILE BOOSTING EFFICIENCY Fortunately, today’s new solutions automate
many of these laborious processes, enabling travel managers to easily navigate complex regulations in multiple jurisdictions simultaneously. Global specialists can help manage the back end of reclaiming VAT expenses. The more sophisticated solutions can integrate seamlessly with a T&E card and expense systems (such as Concur) to extract relevant spending data, which can then be submitted directly to the appropriate tax authorities. The specialists thoroughly examine all expenses, leaving no eligible spending unclaimed. Refunds are then transferred (net of fees) back to the companies, along with detailed spend reporting. And while card remains the best method for T&E expenses –
1 Organisation for Economic Co-operation and Development, Survey 2016 2 VAT IT, Reclaimable Expenses, September 2017
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Whether you are looking to boost the efficiency of an existing reclaim programme or start one from scratch, consulting with your banking provider is often the best place to start. Banks already have a wealth of clients’ spending data at their fingertips, and often work directly with VAT reclaim specialists who can provide a complimentary analysis to determine the benefits. Given the potential savings – and the potential operational benefits that can be felt across the entire company – the opportunity may be too great to ignore.
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