VAT Reclaim On Company Expenses
Value Added Tax (VAT) refunds on Business Travel should mainly be viewed as a saving on corporate expenditure. It is a method by which money can be recovered after having actually spent it. VAT often is the Tax that pays back. Coromandel SAS offers a comprehensive VAT Recovery service in Colombia and South America. We represent in Colombia, Universal VAT Services Inc., a VAT recovery company based in Atlanta Georgia, in the USA.
Many companies do not seem to realise that it is possible to recover money paid as Value added Tax (VAT) relating to Corporate Travel expenses in over 20 countries. These countries include almost all the Western European countries, Canada, South Korea and Japan. Some countries may levy as much as 25% as VAT. Recovering VAT is an official and legally approved process in VAT refunding countries.
Refunds can result in additional savings for businesses. Regardless of the size of your business, whether you are a Multinational or a Small and Medium Enterprise (SME), you can recover your VAT. What is currently paper in your files (we refer to hotel and entertainment invoices), can be converted to cash. To make a rough estimate of your VAT recovery potential, here below is a table of some VAT refunding countries and their standard VAT rates:
Coromandel SAS provides a turnkey VAT recovery solution for clients. In fact there is very little the client has to do except to hand over the VAT invoices to us and a couple of other documents. The rest is up to us. We will do all the work and come back to our clients with the VAT refund. Millions of dollars go unclaimed each year. It is a simple decision to recover your VAT. Make it today.
Coromandel SAS can go beyond just VAT incurred on Travel and Entertainment in VAT refunding countries. We can recover VAT on Accounts Payable Invoices (where applicable), VAT on Parts and Tools etc. If you have an invoice with VAT charges from a VAT refunding country, we are all set to go after the refund.
Fees are normally dependent on the volume of VAT that needs to be recovered. We work on a contingency fee basis. In other words, there is no advance payment to utilise our services. We only get paid on the successful recovery of your VAT. When we have recovered your VAT from refunding countries, we will deduct our agreed percentage as fees, and send you a cheque for your refund.
We recommend that you set up an appointment with our Consultant to explain the process of VAT recovery with a presentation.
To read or download more information on VAT recovery, click here:
VAT FAQs for Colombia
Do foreign countries refund VAT to business entities in Colombia?
Many European countries will refund VAT incurred on Business Travel to Colombian companies. For example, the United Kingdom will refund 20% VAT charged on hotel room charges.
What categories of VAT paid in the United Kingdom, will be refunded to Colombian companies?
Colombian companies can claim VAT paid in the United Kingdom on hotel expenses, meetings and conferences, exhibitions, training etc. VAT can also be recovered if it has been charged on Accounts Payable invoices.
Are there deadlines for a Colombian company to file VAT refund claims with the United Kingdom VAT authority?
Yes, there are deadlines. Colombia companies must file their VAT refund claims with the United Kingdom VAT authority for the preceding UK financial year (1st July to 30th June), by 31st December.
What happens if a Colombian company fails to file a VAT refund claim with the UK VAT authority by 31st December of a year?
The opportunity the Colombian company had to recover the VAT from the United Kingdom VAT authority would have been lost. No extensions of filing dates are given. The company would have literally left money on the table and walked away.
What are the VAT refund filing deadlines for Colombian companies with other VAT refunding European Union countries?
For most European Union countries, the filing deadline for a calendar year, is 30th June of the following year. There are some exceptions. The Netherlands for example, will refund VAT paid for the previous 5 years (there are rules applicable), the first time a company files for VAT refunds with the Country’s VAT authority.