As the business travel economy reinvents itself through apps, ride sharing, and other new methods of booking, new ways for saving money on business travel have been introduced, though the process of VAT recovery has become very cumbersome. There are more details and more processes, and it takes a lot of know-how to make sure your company is recouping as much of its reclaimable VAT as possible.
As the travel platforms are learning to navigate VAT recovery for their clientele, developments are forthcoming that make the data needed easier to retrieve. With simpler apps and some straightforward number crunching, reducing business travel expenses, and reclaiming VAT from those expenses, has never been easier.
In some cities, Uber is becoming a more affordable and more accessible alternative to standard taxis. However, up until recently, converting Uber receipts into the necessary information for recovery of VAT hasn’t been the easiest process.
Now however, the ride-sharing company has created a system that allows you to print or save invoices with the VAT stated in the document. After each trip, the information is readily accessible and allows your employees to submit the information with more ease and clarification for your finance team. Uber’s site even details how you can retrieve the invoice for your records on its website.
In 2015, Airbnb recognized a growing trend of business people using their app to book lodging rather than staying in hotels. They opened a business-specific platform that allows companies to sign up with Airbnb and access all available accommodations through their app or website rather than having to search through multiple sites for the most reasonably priced hotel.
What makes Airbnb Business Travel so effective is that it catalogs employees’ trips and all relevant details, provides financial data and reports, and can also allow managers to oversee which employees are permitted to use Airbnb’s business booking for their travels. They’ve created a system that can provide companies all the information they need when it comes to managing VAT recovery and other financial information, all at the press of a button.
Readjusting Travel Policies
If your company is sticking with the traditional hotel/taxi plan, it may seem like the most conscious money-saving move that organizations can make when setting business travel guidelines for employees is instructing them to seek out the least expensive hotel room in the city where they are staying. However, there is more to consider when this direction comes into play. How far is the hotel from the office? How much will the employee need to pay in gas or cab fare for a round trip every day. In total, do those costs override the cost of “the cheapest hotel possible”?
Many companies are starting to crunch the numbers and realize that even if their employees stay at a slightly more expensive hotel, they will end up paying less in the long run for ground transportation. Therefore, the expenses even out and will cost your company less over time.
Streamlining processes for VAT recovery
The common thread out all these options is that the information needed for companies to reclaim their VAT from business travel expenses is becoming simpler and more direct for both employees and finance teams. When everyone has easy access to the relevant data, there is less fumbling with receipts and less chance of information going missing. By providing a tool like VATBox that streamlines the VAT refund process, VAT can be recouped quicker, data can be more transparent, and the entire procedure can be simplified.
Founded in 2012, VATBox has been revolutionizing the automated VAT recovery marketplace with its cloud-based solution that can be deployed in 30 minutes without any additional budget or IT resources. VATBox’s out-of-the-box solution handles reports, data collection, aggregation, qualification, submissions and the complexities that accompany these processes using a fully automated approach. VATBox implements the highest level of data security and compliance with all international rules and regulations of the various jurisdictions, and offers companies 360⁰ visibility into their VAT spend and recovery. Let us show you how your company can thrive in today’s complex financial times. Request a free demo here.