In Part 1 of this series, we looked at reasons why VAT claims are refused, and concluded that organisations which operate in certain sectors (e.g. Financial services, Insurance, Health, Education etc.) may be unable to recover all or part of their VAT and will often face restrictions to recovery of VAT claims.
Another very common scenario we often see is where a business (including those not operating in those sectors) organises hotel accommodation for its employees’ business trips to the European Union (“EU”). Alternatively, a US business may decide to hold its annual employees’ conference in a European capital which involves flights, accommodation, catering, tours, event management etc. The most obvious thing would be for the business to contact its corporate travel agent who will organise everything. If the travel agent doesn’t have EU experience this could be a mistake and result in the business losing significant amounts of VAT.
Source: way2vat.com
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