Applications such as Microsoft Teams, Zoom or Skype allow companies to maintain telematic meetings that before, necessarily, had to occur in person. In this way, companies can save countless expenses in terms of transportation, accommodation or maintenance, among others. However, despite these technological advances, many face-to-face meetings still take place.
In this sense, from the business travel platform, BizAwayremember it is possible to recover part of the Value Added Tax (VAT) when the trip is of a business nature.
“Not all expenses we make on our business trips will be eligible for VAT recovery. However, many of the common expenses that we make will fall into that category, such as, for example, the accommodation, food or transportation that we use,” they point out from BizAway. To be deductible, they explain, the expenses must be related to commercial purposes and be in compliance with local regulations.
To request a VAT refund, the first thing is know the country’s tax regulations to those who are going to travel in said matter. “It is important to note that, although there is a common regulatory framework within the European Union, specific tax laws may vary between different member countries,” the company indicates.
It is also necessary to record in detail each transaction that is carried out (and on which VAT is intended to be recovered). To do this, the receipts and invoices that prove what expenses have been incurred and what VAT they have paid.
All this will not work if the return is not requested in a timely manner. Generally, companies must submit applications formalities with the tax authorities. And here it is vital to know when and how these requests should be submitted. And since knowing the different regulations and deadlines in each country can be complex, many companies turn to specialized services (such as those provided by BizAway).