Innovating VAT Reclaim Through Automation with Taxback International

Joe Healy |

As we prepare to exhibit at SAP Concur Fusion for the ninth year in a row, we can’t help but reflect on all the fun we’ve had at Fusion events across the globe - from Las Vegas, New Orleans and Seattle to Tokyo, London, Paris and more. It’s been incredibly gratifying to watch our mutual clients go from not even knowing what VAT was, to reclaiming hundreds of thousands of dollars/euros/pounds every year. As the first technology partner to integrate with SAP Concur to automate the entire VAT reclaim process, we’re constantly innovating to make the process even more effortless, provide you with even more visibility, and stay ahead of changing legislation to support compliance.

The tax world is not only extremely complex, but also constantly changing, and global political changes in 2019 will have an impact on both your recovery potential and compliance risk. Fortunately, our flexible, cloud-based software adapts easily to changing rules and regulations, making compliance and reclaim effortless regardless of the changes that governments around the world throw our way. Here’s just a few of the hot topics we’re watching closely:

  • Meals and Entertainment: The Tax Cuts & Jobs Act (TCJA) brought the most substantial overhaul of the U.S. tax code in decades, limiting the deductibility of meals and most entertainment expenses. With meals and entertainment spend contributing up to a staggering 22% of the total travel budget, this has significant impact on your bottom line. From catered lunches to meals for company meetings to fees for hosting clients at sporting events – this major tax legislation impacts a multitude of business activities. Luckily, you can leverage your travel and entertainment expense data to ease compliance and improve the accuracy of your tax filings. Taxback International’s integrated solution with SAP Concur enables companies to simplify the process and improve compliance in line with the new legislation. Stop by booth 301 at Fusion  for a free analysis of your Meals and Entertainment compliance risk.  
  • Brexit: Post-Brexit plans include a new directive that will require paper invoices and receipts for VAT recovery, creating headaches for companies that are used to relying solely on paperless expense and corporate card systems. In addition, after March 29, 2019, EU and non-EU companies looking to reclaim VAT from business in the UK will no longer be able to use the European VAT Reclaim mechanism. It’s unclear what the UK’s new mechanism will look like in a post-Brexit world, or how many delays will be created as a result of the new process. If your company is registered for VAT in the UK or participating in cross-border trade in the other EU Member States, stop by booth 301 to learn about our Brexit-impact analysis.
  • New VAT rules for online retailers selling in the EU: The European Commission (EC) has announced new detailed measures that will pave the way for a smooth transition to new VAT rules for e-commerce that come into force in January 2021. The rules lay out the steps needed to ensure online marketplaces can play their part in fighting tax fraud and to ease administrative burdens for online distance sellers. From 2021, large online marketplaces will be responsible for ensuring VAT is collected on sales of goods by non-EU companies to EU consumers. Since online marketplaces will be liable for the missing VAT, authorities can be certain that they can claim the tax due when sellers from outside the EU have not complied with the rules. These new rules will ensure goods sold from storage facilities within the EU will have the correct VAT charged. To stay up to date on this and other changes in EU taxes for non-EU companies, subscribe to our blog.

These are just a few examples of upcoming changes that will impact your VAT reclaim potential and compliance risk. VAT is complex, but we make it simple with automated solutions in the cloud and experts on the ground to ensure your end-to-end VAT process is effortless. Come by booth 301 at SAP Concur Fusion in San Diego to learn more!