Maximizing VAT Recovery on Employee Expenses: What’s Claimable, What’s Not, and How to Comply

• VAT on employee expenses is often recoverable, but only if strict conditions are met, such as having valid invoices and clear business purposes.
• Travel and accommodation expenses are commonly recoverable, while entertainment-related expenses are usually non-recoverable.
• Inconsistent documentation and varying local VAT rules lead to errors, rejected claims, and missed recovery opportunities.
• VAT recovery depends on who incurred the expense, why it was incurred, and proper invoice details, not just the type of expense.
• Cross-border expenses are especially complex due to differing VAT rules in each country.

Source: vatit.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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