Most registered businesses, subject to VAT (or equivalent tax), are entitled to VAT refunds.
Some restrictions apply for specific sectors (public insitutions, financial services…) or for countries where there is no reciprocity agreement in place with the country of expenditure.
Taxeo can recover VAT in all 27 EU countries, plus Norway and Switzerland.
Different regulations apply in each country, therefore there are slight differences in the way the VAT recovery process works.
The 27 EU countries are: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom. (Upcoming members: Croatia).
Current European regulations only allow VAT recovery for registered business entities. Taxeo provides a platform to reclaim VAT on business expenses.
There is a separate refund system available for goods, not services, purchased for personal use, either directly with the merchant or at exit points from the EU.
In general, VAT recovery is possible on: hotel & accommodation, restaurant, car hire, fuel, public transport, and exhibitions.
Refund rules vary from one country to another.
VAT rates and refund eligibility vary from country to country. For example, VAT rates for accomodation services (hotel room) range from 6% to 25%.
You can use our simple VAT refund evaluation tool to get an immediate indication of what you can expect based on your company’s travel expenditure in each country.
Note this estimate is not committal, as many constraints can exist based on each company and supplier types.
Taxeo offers a fast track, web-based platform to allow any hotel or travel service supplier to be connected in a matter of hours.
More integrated connections can require a few days up to a few weeks of lead time, depending on each supplier’s existing technology and tools.
Unlike many common procurement marketplaces, onboarding to Taxeo is entirely free for suppliers, and the solution makes their life easier too.
One of our account managers will work with your travel department to identify your preferred suppliers and implement a customized affiliation program.
Generally, VAT refunds must be granted within 4 months.
We have seen refunds as short as one week or as long as 1 year. This depends on the country of refund and on the quality of the claim documentation provided. The Taxeo platform optimises your claim filing to best fit with each country requirements, and gives you fully transparent access to all claim statuses.
In most cases, yes.
However, claims involving a non-EU entity have different documentation requirements, in particular invoice originals are required.
The Taxeo platform can automatically generate original electronic invoices, duly signed and archived, which can be used for claim filing instead of running after paper receipts.
The payment method does not affect the eligibility for refund.
As long as a company’s or traveller’s Taxeo ID is added at pick-up or drop-off at the car rental desk, or present in the driver’s profile, invoice data will be transmitted automatically.
The eligibility of VAT refund for bookings made through a TMC is not guaranteed.
- In case the TMC applies a markup and then rebills the service to your company (TOMS scheme), VAT is not refundable.
- Instead, if the TMC is simply consolidating payments but hotels still directly invoice your company, VAT is refundable (local exceptions apply).
In the latter case, the Taxeo platform will work exactly as in the case of a direct expenditure.
VAT refunds are issued in the currency of the country where the expense was initially incurred.
We can arrange to convert all refunds into a single currency and provide you with one consolidated refund (currency conversion charges may apply).
If your company is setup with a unique company ID, the travellers don’t need to carry anything with them.
If you have decided to use personal IDs for better reporting and synchronization, travellers can choose to carry their personal ID in a number of ways: plastic card, digital picture, iPhone app, Passbook for iPhone, Android*, Blackberry*.
In addition, most hotels and travel providers can store the Taxeo ID in the user profile just like a loyalty programme card number. In this case, the card will be automatically reused for all future reservations.
We have defined international standards with authorities such as OpenTravel Alliance andHTNG for storing and transferring the Taxeo ID. Implementation in corporate booking engines, GDSs, switches and PMSs will be progressively addressed by the industry.
* Requires user to first download specific apps such as PassWallet from Google Play or BB App World.
No other VAT reclaim agent offers the ability to connect to merchants to receive invoice data automatically.
This allows the Taxeo platform to issue legally valid electronic invoices and automate the end-to-end reclaim process.
These features allow businesses to recover more VAT than before, at lower cost, and with previously impossible transparency and control. For the first time, Taxeo can give CFOs and Finance Directors one consolidated and real-time view of VAT refund status and forecasts.
Taxeo generates invoices that are not only VAT compliant, but also original electronic invoices, legally signed and archived according to the rules and constraints of each country of expenditure.
You might think that a PDF or Word file, or a scanned image of a printout, or a smartphone picture of a receipt is an electronic document?
The real question is whether they are legally valid, tax compliant electronic documents.
A legal, tax compliant invoice must be:
1. compliant with minimum content criteria;
2. digitally signed to ensure authenticity and integrity;
3. archived for a given legal period;
4. auditable (human readable and with audit trail);
Taxeo’s compliant electronic invoices are specifically designed to meet the specific content needs for travel services (accomodation, rental car, …), and to be legally compliant across Europe.