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Many firms are filling incomplete or incorrect domestic VAT returns

Businesses are not filing full or correct domestic VAT returns at an astonishing rate of 60%


Kilkenny, Ireland – WEBWIRE

Defining domestic VAT reclaim

Domestic VAT reclaim refers to the recovery of VAT on domestic travel and expense (T&E) transactions. These transactions include things such as hotels, accommodation, meals and entertainment. and is typically reclaimed monthly or quarterly, providing regular cash flow into your business.

In addition, there are a number of countries that also allow you to reclaim backdated VAT on local business spend, up to 5 years, in some countries.

However, the complicated nature of the reclaim process paired with the high risk of getting it wrong can lead many companies to not reclaim domestic VAT at all.

Of VAT returns that companies submit 60% of them are non-compliant

Internal research conducted by Taxback International has found many companies are not making full or correct Domestic VAT submissions to their local tax office.

Significant revenue is slipping through the cracks. This is happening because companies are incorrectly reclaiming domestic VAT or not including all eligible receipts.

 

When Taxback International examined the causes for this four main issues emerged:

  1. Invalid domestic VAT was deducted rendering it non-compliant with Tax Office laws

  2. Domestic VAT was deducted but was incorrect and ineligible, resulting in firms reclaiming a high amount of ineligible VAT

  3. Eligible domestic VAT was not deducted resulting in a loss in the reclaim for the company

  4. Many smaller expenses were missed as they were thought too difficult to reclaim on or the company lacked the resources to manage the amounts of these small transactions 

Overall we discovered over 60% of companies were submitting domestic VAT returns that were non-compliant, and were therefore risking fines from the Tax Office and indeed Tax Audits.

What are the advantages of teaming up with Taxback International?

With more than 20 years of experience working with global tax jurisdictions, Taxback International understands the local VAT practices of over 180 countries to guarantee full compliance with tax legislation.  

Taxback International integrates with all Expense Management Systems so there is no IT implementation needed. Taxback International provides all of the analysis, preparation and domestic VAT reports in the manner required by your local tax office for inclusion in your local domestic VAT return.

The fully managed process for identifying and reporting compliant VAT amounts makes it quick and easy for businesses to deduct the correct amounts of VAT domestic VAT returns. 

Get started with us

Taxback International can provide a free analysis, highlighting missed Domestic VAT opportunities within your VAT process, commitment free.

Working with Taxback International is simple and requires minimal effort from clients. Find out more.


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 Domestic Vat Reclaim
 Domestic Vat Returns


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