VAT reclaim

VAT reclaim is the process of recovering the value-added tax (VAT) paid on goods and services related to business operations. It allows companies to reduce business expenses, specifically on corporate travel which includes flights, hotel stays, event fees, car rentals, etc.

To reclaim VAT, a business must:

• register for VAT (in most cases, it can be done online) and get a unique VAT registration number (VRN);
• complete a VAT return form and submit it to the tax authorities at regular intervals (usually, quarterly). The form includes information about sales and purchases during a certain period. 

VAT rates vary across countries. In Europe, they range from 17 percent in Luxembourg (the lowest) to 27 percent in Hungary (the highest). Refunds are usually made within 30 days. In some cases they can come as early as 10 days.