Domestic VAT on Travel & Entertainment
Maximise your business’s input recovery while ensuring guaranteed compliance of your VAT submission from local travel.
Our Service
Purpose-built Artificial Intelligence utilises OCR and smart, automated processes to audit local travel expenses and provide businesses with detailed (yet easy to use), compliant input VAT recoveries to be included in your VAT return. In-depth VAT and expense reporting are also easily accessible on our state-of-the-art, cloud-based processing platform.
Additionally, the VAT IT Reissues team converts non-compliant invoices into compliant formats to ensure your business’s VAT yield is increased!
Why outsource to us?
The nature of travel and entertainment expense means that travellers do not always receive or capture fully compliant invoices for VAT recovery. This places the burden of compliance on finance teams who need to ensure there is no business risk in submitting non-compliant documents for VAT recovery.
Additionally, if identified, the lost recoveries from non-compliant documentation can be substantial.
Trust the experts who utilise groundbreaking technology to provide maximised, detailed compliant input recovery schedules to be included in your returns.
What is Domestic VAT on T&E?
Domestic VAT – also known as input VAT – is claimed on local travel and entertainment expenses. Up to 27% of these T&E expenses can be claimed resulting in considerable savings.
Why is Domestic VAT on T&E neglected?
While businesses often input their local vendor VAT in-house using expense management software, the VAT on domestic employee travel and entertainment expenses is usually neglected.
This is due to the following reasons:
Risk of Over-Claiming
A fear that claims may be made on missing or non-compliant invoices and therefore the business is at risk of over-claiming.
Compliance Uncertainty
Using expense management systems which are unable to automate the process while ensuring 100% compliancy.
Penalties
Companies often forego the entire reclaim process in case they succumb to VAT authority penalties.
Depending on the territory, Domestic VAT is claimable on the following Travel & Entertainment expenses
Hotel and accommodation
Public transport
Corporate car rental
Client entertainment
Taxi fares
Staff entertainment and meals
We can add value to your business if …
You have employees travelling locally for business purposes or you have local entertainment expenditure
You rely on an expense management system or a manual system to provide compliance of VAT claims
Your finance team is too stretched to spend time reviewing individual travel invoices with the required level of detail
You are losing potential VAT recoveries because of non-compliant invoicing
Guaranteed Success
By outsourcing your VAT recovery, you can mitigate all compliance risk as well as increase your VAT yield. We envision ourselves as an extension of your finance team, freeing your employees to focus on critical areas of the business function.
We guarantee:
Accuracy
We review large volumes of invoices with 100% accuracy using our software’s rules- based AI.
Invoice Compliance
We check every invoice’s line items, removing non-claimable expenses and recalculating the invoice’s VAT input amount.
Global Consolidation
We consolidate compliance for multinational entities in multiple countries.
No Human Error
We remove user driven inaccuracies by running AI-driven audits on all transactions regardless of inputted data. We have multiple levels of checks that are performed on each invoice individually.
Up-To-Date Regulation
We offer a deep understanding of 135 country VAT laws, consistent compliance with any periodic changes to VAT laws and regulations as well as first-hand knowledge when new VAT regimes are implemented within a country.
Quick Turnaround
By outsourcing your VAT compliance to industry experts who are dedicated, experienced and solely focused on ensuring and understanding global VAT compliance legislation, your company is guaranteed the fastest turnaround time possible.
Did you know that 27% of companies are non-compliant?
Download an infographic to see more interesting stats about Domestic VAT.
