Generally, businesses can reclaim the majority of VAT paid on eligible expenses, subject to fulfilling nominal criteria. The applicable VAT rate varies from country to country, as does the list of eligible business expenditure.
In some cases, only a partial recovery of the VAT amount paid is allowed. These partial recovery expenses are usually related to passenger cars, accommodation, meals and business entertainment. For example, Belgium refunds 50% of VAT paid on the expenses related to passenger cars, while in Denmark businesses can only claim back 25% of the VAT they have been charged on meals.