Are you reclaiming your VAT Tax for international travel? Many companies leave billions of dollars in unclaimed VAT Tax behind. Travel Incorporated wants to make you aware of your VAT Tax reclaim options, and how they can significantly help your bottom line.
What is VAT Tax?
VAT Tax, or Value-Added Tax, is a consumption tax added to most goods and services in many countries around the world. The national tax systems of Europe, Canada, Japan, and Australia allow most nonresident business entities to claim a refund of VAT. The VAT rates vary from country to country, and are currently 17% – 27% in Europe, 8% in Japan, and 10% in Australia. VAT Tax is typically added right into a traveler’s hotel bill or car rental, so most travelers and travel managers don’t see it.
Reclaiming Your VAT Tax
The process of reclaiming VAT Tax can be a lot of work, and many companies choose to avoid reclaiming as they question if the work is worth the hassle. A company wanting to reclaim their VAT Tax would need to understand the rules, know how to prepare the proper forms for each country, and be able to answer follow up questions in the country’s native language. The good news is there are companies that can help. The following are a few of the services you may want to consider.
- Euro VAT Refund
- VAT IT
- Cash Back
Most VAT Tax companies take a percentage of the amount they recover as their payment, although the percentage will vary. They don’t charge anything if they are not successful in making a VAT recovery. Additionally, if you are a Concur Expense partner, consider working with a company that has an automated process and connects with Concur Expense for an integrated, end-to-end solution. The value of an integrated solution lies in the ability to leverage your existing data to maximize VAT refunds.