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.
Using expense management systems which are unable to automate the process while ensuring 100% compliancy.
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
Corporate car rental
Staff entertainment and meals
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 review large volumes of invoices with 100% accuracy using our software’s rules- based AI.
We check every invoice’s line items, removing non-claimable expenses and recalculating the invoice’s VAT input amount.
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.
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.
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.