When it comes to foreign VAT reclaim, one of the most common questions we receive is: What qualifies for VAT reclaim? The good news is that many business expenses incurred abroad could be eligible for a refund. Whether you’re traveling for a business trip, attending an event, or purchasing equipment for your work, you might be entitled to reclaim the VAT you’ve paid on those purchases.
In this article, we’ll provide you with a list of common expenses that are eligible for VAT reclaims, discuss the process, and help you understand how VAT refunds can benefit your business. Read on to discover which of your business expenses could potentially result in a VAT refund.
What Expenses Qualify for Foreign VAT Reclaim?
Foreign VAT can be reclaimed on a variety of business-related expenses that occur outside your home country. This includes expenses related to business travel, conferences, equipment rentals, and more. Here are some of the most common expenses that can be reclaimed for VAT:
- Hotel Stays
Whether you’re traveling for a conference, a client meeting, or just a business trip, hotel stays are one of the most common expenses eligible for VAT refund. If you’re paying VAT on your accommodation abroad, you’re likely eligible to reclaim it, provided the accommodation is for business purposes.
Some countries may have specific rules about the types of hotels or room rates that qualify, but in general, if your stay is tied to a legitimate business activity, the VAT paid on the hotel bill could be refunded.
- Taxi Rides and Transportation Costs
If you’re traveling for business and have incurred taxi fares, public transport, or car rentals during your time abroad, you may be able to reclaim the VAT. For example, if you took a taxi to a business meeting or traveled between airports for work, the VAT paid on those transportation services is likely eligible for a refund.
It’s important to keep all your receipts for these transportation expenses, as they’ll be required when submitting your VAT claim.
- Event and Conference Fees
Many businesses incur costs related to conferences, seminars, trade shows, and business events. The VAT paid on event registration fees, exhibition stands, and any services related to these events may be reclaimable, as long as the event is directly related to your business activities.
Whether you’re attending an international conference or hosting a workshop, keep a record of any event fees, as they could be eligible for VAT recovery.
- Equipment Rentals
Whether you’re renting office equipment, AV equipment, or other tools needed for your business activities abroad, the VAT you pay on these rentals could be refunded. For example, if you’re renting audiovisual equipment for a presentation or renting office space for a business meeting, the VAT paid on these services may qualify for a refund.
The key here is that the equipment must be used for business purposes. Personal rentals or non-business-related rentals won’t qualify.
- Business Meals and Entertainment
In some cases, VAT paid on meals, business lunches, and entertainment related to business activities may also be eligible for a refund. If you’re meeting with clients or partners abroad and incurring costs related to these meetings, it’s worth checking if the VAT on meals, drinks, or entertainment is reclaimable.
However, there may be specific rules governing how much VAT can be reclaimed on these expenses, and it’s important to ensure that the expenses are clearly tied to business activities.
- Fuel Costs
If you’re renting a vehicle abroad for business purposes, you may also be able to reclaim the VAT on fuel costs. This includes fuel used for travel to business meetings, events, or other work-related activities. As with all VAT claims, keeping clear records of your fuel receipts is essential.
- Equipment and Supplies for Business Use
If you purchase equipment or supplies for business use while abroad, VAT on those purchases may also be reclaimable. For example, if you’re buying materials, office supplies, or technology for your business, the VAT paid could potentially be refunded.
Again, the key factor is ensuring that these expenses are strictly for business use and not for personal purposes.
What Should You Keep in Mind When Reclaiming VAT?
While many expenses are eligible for VAT reclaims, there are some important rules and conditions to keep in mind:
- Eligibility Requirements: Not all expenses will qualify for a refund. Make sure that your receipts are from legitimate business expenses and that they meet the specific criteria of the country where you’re filing the claim.
- Proper Documentation: Always keep clear and accurate receipts or invoices for every transaction. These will be required to submit your claim.
- Submission Deadlines: Each country has its own deadline for submitting VAT claims, so make sure you submit your claims in time. Delays in submission could lead to a loss of your refund.
- Work with VAT Experts: If you’re unsure about what qualifies for VAT reclaim or if the process seems overwhelming, partnering with a VAT reclaim service provider can help. Experts can help you navigate the complexities of international VAT laws and maximize your refund potential.
Why Should You Reclaim VAT?
Reclaiming VAT on eligible business expenses is a simple way to reduce your costs and improve your bottom line. Every year, businesses across Europe leave billions of euros unclaimed simply because they don’t know what they can reclaim or how to submit a claim.
By working with a VAT expert or utilizing a VAT reclaim service, you can ensure that you’re not missing out on any potential refunds. In many cases, the amount you reclaim can add up significantly, providing you with extra funds to reinvest in your business.
Start Reclaiming Your VAT Today!
If your business is spending money abroad for work-related travel, conferences, equipment rentals, or other expenses, you could be eligible for a VAT refund. From hotel stays to transportation costs and event fees, there’s a wide range of expenses that may qualify for a VAT reclaim.
Don’t leave money on the table — start reclaiming your VAT today. If you’re unsure about what qualifies or need help navigating the process, our team of VAT reclaim experts is here to guide you through every step.
To determine your potential VAT refund and learn how VATcube can help your business, take advantage of our free VAT assessment. Simply contact us through our FREE VAT Assessment form and our team will be happy to assist you.
Send us your VAT receipts today, and we’ll make sure you get the refund you deserve — without the stress.