What are your VAT deadlines?
12th December 2019: Do you know which of the 3 major VAT deadlines your company must comply with?
Companies pay VAT on the many business expenses they incur during corporate travel including bus tickets, meals, taxis and hotel stays. Global business travel spend is forecast to reach $1.7 trillion by 2022, but many organisations still only recover a fraction of what’s owed to them.
There are 3 main VAT deadlines throughout the year that companies looking to reclaim VAT on business travel must be aware of:
The December Deadline (31st December) is relevant for US and non-EU companies looking to reclaim VAT on corporate expenses and business travel incurred in the UK.
Eligible companies can reclaim VAT on goods and services consumed during the refund period (July of the previous year to June of this year) in the UK. In order to reclaim UK VAT, the valid VAT invoices and receipts must be submitted to the relevant tax offices ahead of the deadline.
The June deadline (3oth June) applies to non-EU companies (U.S.A., Canada, Australia) that have incurred value-added tax (VAT) on corporate travel expenses in the EU and EU companies that have incurred value-added tax (VAT) on corporate travel expenses in Norway and Switzerland.
In order to reclaim EU VAT, valid VAT invoices and receipts must be submitted in hard copy to the tax administrator by June 30th in order to obtain the refund eligible for VAT. This deadline is applied under the 13th directive.
The United Kingdom exception
The United Kingdom has exceptions in the 13th Directive, The deadline for the 13th directive in the United Kingdom i.e. Non-EU companies reclaiming UK VAT is the 31st December. This includes the period for VAT incurred from the 1st July to the 30th June of the previous year.
The September deadline (30th September) applies to EU companies reclaiming EU VAT under the 8th Directive, i.e. EU companies reclaiming VAT within EU countries that do not include their home country. This includes the period for VAT incurred between the 1st January and the 31st December. The September deadline also applies to non-EU companies claiming from certain EU countries (e.g. Spain).
To receive a VAT reclaim for in the EU, EU companies must provide copies of the valid VAT invoices and receipts. For non-EU claimants, originals may be required.
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