Reclaiming VAT on travel expenses in the accounting industry
You don’t have to settle for subpar returns. Here’s how to leverage your greatest strengths and reclaim VAT on travel expenses in accountancy while maximizing your VAT potential and minimizing the administrative workload.
Fortunately, when reclaiming VAT within the accounting industry, most businesses have the advantage of immaculate accounting to help aid the process. Businesses in accountancy are no strangers to the importance of transparent, error-free, and resource-intensive processes. However, some expenses still slip through the cracks when reclaiming VAT on travel expenses.
Fortunately, you don’t have to settle for subpar returns. Here’s how to leverage your greatest strengths and reclaim VAT on travel expenses while maximizing your VAT potential and minimizing the administrative workload as an accountancy firm.
Step one: Improve your spending visibility
Business travel expenses can accumulate significantly over a year (or a few). Still, many businesses aren’t fully aware of what they can rightfully claim back and what they can’t. However, before identifying your eligible expenses, they must be visible from a financial point of view. Are there any travel-related expenses within HR, sales, or marketing? Ensure all costs are visible from a leadership level across all departments and that each expense has been accurately recorded with the relevant data and documentation.
Step two: Identify eligible expenses
Another challenge regarding VAT reclaim on travel expenses is staying current with the eligible expenses you can rightfully reclaim in each country. Depending on where you are claiming VAT from, certain goods and services may be recoverable where others may not. No harm, no foul? Well, not quite. There are penalties in certain jurisdictions for under and overclaiming VAT, raising some red flags amongst the local tax authorities. So, ultimately, you’re going to need to be accurate when it comes to which expenses you are reclaiming.
Fortunately, we’re here to help. Some general recoverable travel expenses may include:
VAT incurred at international meetings, events, conferences, conventions & trade shows
Not only is this critical from a compliance perspective, but understanding the nitty-gritty of the local VAT recovery process offers significant advantages for businesses looking to maximize their VAT potential. Many countries offer special VAT recovery schemes for non-residents who want to reclaim VAT on travel expenses. Once tapped into the foreign VAT reclaim landscape (with the help of experts by your side), companies can better leverage and utilize industry-specific recovery schemes.
Effortless VAT reclaim on travel expenses in one centralized VAT solution
Don’t let savings slip through the gaps. Sure, you may be able to lock down the foreign VAT reclaim process for now - but at what cost? Your time? People? Resources? Money? At VAT IT, we offer industry-specific solutions to help companies maximize their VAT savings yield and administer it effectively and efficiently without compromising other business responsibilities.