Irish Businesses are less likely to reclaim VAT!
In an age when businesses, of all sizes, are watching the pennies it appears that 80% of foreign VAT expense remains unclaimed. A recent survey has indicated that businesses from other European countries are twice as likely to reclaim foreign VAT. Smaller Irish companies are even less likely to reclaim than their larger counterparts.
The top reasons that businesses neglect their foreign VAT are-
• Companies are often unaware of the fact that they are entitled to reclaim VAT on services whilst operating abroad.
• Some companies are aware of their entitlements but are confused by the reclaim procedures.
• Claims in most European countries can take up to 6 months to complete and as a result many companies don't pursue claims even though significant sums could be involved.
• Companies lack the knowledge and experience of each countries VAT legislations to obtain refunds.
European VAT legislation is designed to give all European businesses a level playing field. This legislation ensures that businesses cannot be disadvantaged by additional costs, which a local business can automatically recoup through its local VAT returns.