Can my company reclaim the VAT on expenses incurred while employees are on foreign business travel?

Many individuals travel abroad and incur travel and entertaining costs, however the VAT element on these costs are often overlooked. Reclaiming VAT on recoverable expenses while abroad is often not considered by clients due to the complex process and continually changing rules and regulations.

VAT rates range from 5-27% across the globe, each with different rules, deadlines and filing requirements, if a piece of data is missing or inaccurate, the entire claim may be denied, but this should not deter clients if the value of the expenditure incurred warrants a potential claim.

The following are types of foreign expenses incurred where there may be a VAT claim;

  • accommodation and meals
  • fuel and transport
  • marketing, advertising, events and conferences
  • professional services

With regards to the costs incurred, it must also be wholly and exclusively for the purpose of your trade, so not only must the invoices/receipts be retained the reason for the trip, employee and customer details must be detailed.

With our links via IAPA, we have access to an organisation that specialises in Global VAT compliance, they will eliminate your VAT burden and make compliance and recovery effortless. Fees are also on a contingency basis so no refund – no fee.

If your company incurs a considerable amount of foreign business expenses, especially in the European Union, then they will generally have a VAT refund.

Please get in touch and we would be happy to put you in contact with our associate member within the IAPA to review your potential VAT refund. 

Posted by Graham McNeill

The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.

Lambert Chapman Chartered Accountants

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