Originally published in
Reprinted with permission

Windfall: VAT Refunds for Business Travel

It’s easy to allow thousands to fall through the cracks

Firms with significant overseas business may be leaving thousands on the table in unrecovered VAT charged when execs or sales people travel overseas.

Many on-the-ground expenses U.S. travelers incur are subject to VAT, which vary from country to country. The most common are hotel rooms, meals and local transport.

Since VAT rates range from 15% to 20%, as they say in Washington, pretty soon you’re talking real money.

For example, just last year Morgan Stanley & Co. recovered $400,000 in VAT its dealmakers left on the table when jetting overseas to negotiate M&A deals.

It doesn’t take much foreign travel to reach the $10,000 or $15,000 level, says Jon Casher of RECAP, Inc., a New Jersey firm that specializes in overpayment recovery.

Flag foreign travel costs

Simple fix: Start flagging T&E reports for foreign travel, save copies of receipts for the IRS and submit the originals to taxing authorities for refunds.

Since the forms and procedures involved can be tricky, consider outsourcing the task to a firm that will take a percentage.

Info: Casher, 888-697-6430

"Windfall: VAT refunds for business travel" © 1997 Progressive Business Publications