Businesses leave significant savings on the table when they don’t reclaim value-added tax paid on their travelers’ meals, hotels and car rentals abroad. In fact, as much as 5% of foreign travel spending goes toward VAT.
So, why don’t more companies try to recoup VAT? Because it’s a confusing, bureaucratic process that costs time and money. But the reality is it’s far more expensive not to recoup VAT. BCD Travel estimates that a company spending €5 million per year on foreign travel could easily be losing €300,000 by failing to go after VAT. And that’s a conservative figure.
The good news is that managing foreign VAT for European Union transactions has gotten easier because of BCD Travel’s partnership with VAT-recovery firm Taxeo. Here’s how it works: Hotels, car rental companies and other suppliers sign up for Taxeo’s automated, paperless, VAT-compliant invoicing process. This combination of technology, expertise and economies of scale ensures greater foreign VAT recovery than even large multinational businesses can accomplish on their own.
Want to know more? Check out this video about VAT reclaim opportunities and downoad BCD Travel’s white paper and infographic: VAT Reclaim: Don’t leave money on the table. Then ask your account manager how BCD Travel can help you reclaim the money you’re leaving ont he table.
