The unclaimed billions

ANN JONES investigates why so many businesses are failing to reclaim billions in taxes.

EXPENSES INCURRED BY employees whilst travelling on business (such as hotels restaurants transport etc.) are subject to VAT or GST (goods and services tax) in all Member States of the European Union as well as in a number of other states including Canada. VAT or GST is also levied on services supplied to companies by foreign service providers when these services are 'supplied where performed' (such services include conferences and trade shows some professional fees training courses and certain inter-company services). In compliance with the EEC Eighth and Thirteenth Directives as well as with applicable bilateral conventions this VAT is generally recoverable from the tax administration of the country in which it was paid.
Businesses across Europe are losing out to the...