Businesses pass up €5 billion on VAT returns
The Killorglin Co Kerry-based company returns millions of euro in VAT payments to companies each year. However, they say, while it is the biggest player in the sector, ignorance among accountants of the ability to reclaim VAT on travel expenditure in thousands of companies means they have less than 1% of the available business.
The managing director of FEXCO VAT Refunds Ltd, Kathleen O’Connor, said their figures indicate companies fail to reclaim more than €5 billion US dollars in foreign recoverable Value Added Tax (VAT) each year in the 15 EU member states and Canada. “Companies that fail to recover VAT are throwing away the opportunity to improve their bottom line performance. VAT charges can add as much as 25% to a business trip bill and, while companies are entitled to reclaim this VAT expenditure, many businesses do not because they are daunted by myriad VAT regulations and language requirements.
