Do you travel abroad a lot for business? If so you’ll want to ensure you know the VAT rules – here is a good guide.
Tax On Invoices Changing Places
Most services provided across EC borders have, since January of 2010, been invoiced without tax. Invoice recipients who are dealing with foreign suppliers are expected to self-assess VAT through the usual VAT declaration process. If some service agreements have already borne foreign VAT, the companies who have paid these fees have a chance to recover them.
VAT And Travel Expenses
VAT still applies to all commercial travel expenses. Companies dealing with travel expenses need to recover the tax from the relevant authorities in the countries in which the expenses were paid out. Because deduction rights remain unaligned by the new 2008/8/EC directive, the rates and rules applying to deduction vary from country to country. In France, for instance,