Whether renting a car or booking a hotel, traveling for business in Europe incurs VAT costs. European car rental provider Europcar and Taxeo, a provider of paperless VAT refund services, have entered into a partnership which allows their mutual clients to reclaim VAT more quickly and easily according to local laws.
Taxeo receives electronic invoice data from Europcar and creates tax-compliant electronic invoices that are used for VAT recovery. The result will give Europcar Corporate customers an opportunity for significant savings.
“This means that we are able to reduce car hire costs for our mutual clients by up to 15 percent,” explained Jean Cazes, CEO of Taxeo. “Our solution is very simple for companies and travelers to use. Moreover, it brings the additional benefit of tax-compliant e-invoices and structured data for expense management.”
Every year companies lose out on €5 billion VAT incurred on international travel. Recovering VAT, especially for travel expenses like hotel, car rental, conferences, etc., is complex, expensive, and inefficient, due mainly to non-compliant or lost invoices. The Taxeo solution is designed to streamline today’s manual paper-based VAT recovery process.