You know that you can claim South African Vat as input tax. However, you may be neglecting to claim Vat refunds on international business expenses. Now it's your chance to exploit this untapped reserve.
International Vat claims explained
Vat in European and other countries: What are the Vat implications?
The Practical Vat Loose Leaf Service explains that to encourage international trade, European legislation was adopted in the 1990s to enable businesses to recover the Vat on expenses that they've incurred abroad.
This means companies like yours are allowed to reclaim the Vat on the following expenses:
Please note that as is the case in South Africa, you'll need to keep and provide all your relevant invoices if you wish to reclaim Vat.
International Vat claims: Take what you're entitled to
A European Commission report found that 80% of companies don't reclaim Vat expenses to which they're legally entitled. Some of the reasons companies don't reclaim include the following:
International Vat claims: How to take the trouble free route
According to the Practical Vat Loose Leaf Service, certain companies, such as VATit (www.vatit.com), Taxback International (www.taxbackinternational.com) provide services on a no refund – no fee basis!
When your business is entitled to a refund, they deduct a processing fee from your refund cheque. The processing fees usually vary per country. It may be a good idea to consider these companies.
Now that you know about International Vat claims, make sure you don't neglect to claim Vat refunds on international business expenses.
PS - You could be missing out on 19 input tax VAT savings...