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VAT-inclusive Corporate Expenses
Certain types of international corporate expenses may contain recoverable VAT expenses.
The recoverability of the expense is contingent upon the VAT reciprocity agreement between the country where the expense took place and the home country of the business incurring the expense.
In general, almost all VAT is recoverable through a local tax filing if the company incurring the expense is VAT-registered in the country where the expense was incurred. For firms with a tax residence outside of the country where the expense took place, the rules are more stringent. VAT incurred in the following expense categories is refundable (with qualifications) from Canada, South Korea, and countries in Europe.
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| Diesel, gasoline, parking, rental, repairs, road tolls |
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| Catering, equipment, meeting rooms |
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| Fuel, leasing, hanger fees, repairs |
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| IT, telecommunications, management services, training |
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| Marketing, advertising, legal, translation, recruitment, secretarial, limousine, short-term office facilities, maintenance, auditors |
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| Equipment, samples, software, supplies (when used in-country for trade shows or sales support) |
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| Clinical trials, copyright fees, development, product testing |
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Sales / Distribution Expenses |
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| Sales personnel, distribution partners, commission fees, listing costs, parts and labor warrantees, technical support |
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| Shipping to and from VAT-refundable countries should be VAT exempt. If charged, VAT can be recovered under certain circumstances |
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| Charges for in-country service are generally refundable |
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| Booth, catering, entrance fees, services, supplies |
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| Costs are refundable, provided company employees are being trained |
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| Accommodation, individual and group meals, rental car, gasoline, etc. |
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