- Business trips in Europe often incur high transportation costs, particularly for car rentals and fuel.
- VAT refunds can be requested for these expenses, but the deductibility rules vary greatly depending on the country visited. For example, Germany allows full deductibility for both fuel and car rental, while the UK only allows partial deductibility for car rental.
- France has non-refundable VAT on car rentals in some cases, but reclaimable in others.
- It is important to understand the deductibility rules and compliancy requirements in each country to ensure successful VAT reclaims.
- Tips include familiarizing oneself with the rules, ensuring compliant documents are obtained, auditing expenses, and understanding the basics of VAT reclaim in each country.
- VAT4U can assist with monitoring compliancy rules and providing a mobile app for easy expense management.
Source VAT4U
