VAT reclaim

Recovering VAT paid on business trips where valid documentation is available. Many countries allow companies to reclaim value-added tax charged on eligible business expenses, such as hotel stays or meals, provided the traveller retains a compliant invoice or receipt. Because rules and eligible categories vary by country, VAT reclaim is often handled through specialist software or a reclaim service.

Rules for reclaiming VAT differ significantly between countries. Domestic VAT is often recovered through the company's regular VAT return, while VAT paid abroad may require a separate refund procedure in the country where it was charged. Eligible categories also vary: hotel stays, conference fees and business meals may be recoverable in some countries but not in others. In almost all cases, a valid VAT invoice in the company's name is required — a simple receipt is often not enough. In the Gulf, for example, VAT was introduced relatively recently — in the UAE and Saudi Arabia in 2018 — and the rules for recovering it on business travel follow each country's own regulations.

For companies, the biggest barrier to VAT recovery is missing or incorrect documentation. When employees book independently and collect receipts themselves, many expenses end up without a compliant invoice, and the VAT is lost. Centralised booking and payment make it much easier to obtain the right documents, and specialist tools or advisers help with cross-border claims, where deadlines and requirements are strict. Tracking VAT separately in reports also shows how much could be recovered.

Tumodo helps companies reclaim VAT on eligible business travel expenses and reduce the total cost of trips. Because services are booked and paid centrally, travel documents are generated automatically and stored in one place, rather than collected from employees after the trip. Finance teams can download the documents they need in PDF or XLS, and Tumodo's accounting specialists are available to help with travel-related financial questions and documentation.