Foreign VAT Reclaim

Foreign VAT Reclaim: What is it?

Travel and entertainment (T&E) costs incurred by employees while on business trips abroad are eligible for refund by foreign tax authorities. Accommodations, food, taxis, auto rentals, public transportation, and conference expenditures are all considered eligible expenses.

Refunds may also be requested for invoices from Accounts Payable (AP), such as those for tooling, facility rental, expert services, supplies, and installations.

Difficulties in refunding overseas VAT

Every nation has its own unique standards and deadlines, as well as various administrative procedures for filing. Operating in international markets necessitates legal knowledge, assistance for foreign languages, and connections with regional tax authorities. Due to a lack of information or resources, businesses frequently file incomplete claims.

Reclaiming foreign VAT is subject to time restrictions. You might end up losing your refund if you miss the window for claiming VAT.