Domestic VAT Recovery

What is Domestic VAT?

Businesses incur VAT (Value Added Tax) on domestic or local business travel and other business-related expenses. Domestic VAT Recovery allows businesses to recover this VAT as a direct business expense through your local VAT returns in countries where:

You are established and registered; or
not established but VAT registered

Many countries operate a backdated domestic VAT refund system, allowing for refunds up to 6 years after the expense is charged.

*Subject to deduction rules and restrictions per country.

VATConnect

VATConnect is our secure cloud-based platform designed to optimize VAT reclaim for both Foreign and Domestic VAT Reclaim processes. With VATConnect, every transaction with VAT recovery potential is identified and streamlined into the reclamation process. Through seamless integration with Expense Management Systems, VATConnect accurately identifies potential VAT recovery opportunities. By eliminating submission errors and ensuring compliance with tax office regulations, VATConnect not only simplifies the VAT reclaim process but also maximizes the value of VAT reclaims for businesses.

Find Out More

Eligible Travel and Entertainment expenses.
- Accommodation
- Parking
- Meals
- Professional services
- Fuel
- Car rental and taxis
- Public transport
- Conferences
- Training courses and seminars
- Local purchases of goods

Eligible MICE-related expenses.
- Meetings
- Incentives
- Conferencing
- Exhibitions
Non travel related invoices.
- Supplier invoices related to domestic / local spend such as office stationery or office canteen supplies.
- Eligible Accounts Payable (AP) spend

The challenge of Domestic VAT Recovery

We work with major global enterprises, and as a first step we complete Domestic VAT Health Checks for companies who are either using a competitor or filing themselves.

Our insights have found that 60% of companies are not making full or correct Domestic VAT submissions.

Four consistent causes emerged:

VAT was deducted but not valid, therefore non-compliant with Tax Office laws
VAT was incorrectly deducted and thus ineligible, resulting in companies reclaiming a high amount of ineligible VAT
VAT that was eligible, was not deducted resulting in a loss in the reclaim for the company
All smaller expenses were missed as they were regarded as too difficult to reclaim on or the company didn’t have enough resources to manage the high amount of these small transactions

Work with Taxback International

Domestic VAT reclaim is a major lost opportunity for many companies to easily generate significant revenue. Our insights have found that 60% of companies were not making full or correct domestic VAT returns to their local tax office before working with us.

Understand your businesses’ Domestic VAT refund potential.

Taxback International will provide you with a free sample analysis, which will highlight where we identify missed Domestic VAT reclaim opportunities within your VAT process.
We integrate with all Expense Management Systems meaning there is no IT implementation needed.
We do all of the analysis, preparation and provide your report in the style required by your local tax office for inclusion in your local VAT return.

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