VAT IT
The Expensify-VAT IT integration helps businesses reclaim Value Added Tax (VAT) on international expenses. If your company is based in the U.S. but conducts business abroad, you can track expenses in Expensify and sync them with VAT IT to simplify VAT recovery.
Value Added Tax (VAT) is a consumption tax applied to goods and services in many countries. It is automatically included in purchases, but businesses traveling internationally may be eligible for VAT refunds.
VAT-Recoverable Expenses
Businesses can reclaim VAT on various expenses, including:
- Hotels and lodging
- Business entertainment
- Conferences and trade shows
- Legal and marketing fees
- DDP shipping and storage fees
- Aviation-related expenses
- Other qualifying international business expenses
How VAT Refunds Work
VAT refund regulations vary by country and expense type, making the process complex. Global VaTax simplifies this by handling:
- VAT analysis and calculation
- Expense classification based on VAT eligibility
- Report preparation and submission to tax authorities
By syncing Expensify with Global VaTax, businesses can automate VAT reporting and reclaim eligible expenses efficiently.
How to Connect Expensify with VAT IT
Follow these steps to activate the integration:
- Create a dedicated Expensify user for VAT IT and assign that user the Auditor role.
- Assign each relevant policy to that user so VAT IT can access the correct entities.
- Confirm the invitation and access setup by email.
- VAT IT verifies that the correct policies are visible and that the connection has been set up correctly.
Once VAT IT prepares your VAT reclaim documents in the required languages, they will submit them to the appropriate tax authorities. If you have questions about this process, reach out to vat@expensify.com.
Tracking Your VAT Reclaim
After submission, you can monitor the progress of your VAT reclaim via the Submission Analysis Report in Global VaTax.
By integrating Expensify with VAT IT, businesses can maximize VAT recovery while reducing administrative burden.
