2016 will see Europcar and Taxeo join forces in a strategic partnership to offer Europcar business customers an effortless and straightforward way of recovering VAT on their car rental expenses within the European Union.
Why is Europcar partnering with Taxeo?
The current process for obtaining a VAT refund is complicated and rife with errors.
By integrating Taxeo’s resource for optimising VAT recovery to its service, Europcar intends to simplify this procedure for its business customers.
Taxeo’s solution transforms what was formerly a longwinded, error-prone affair into a fully automated, hassle-free addition to its service.
Despite being a right for businesses in many EU countries, VAT refunds on business travel expenses in Europe are not being reclaimed due to the laborious nature of the refund process.
Each year, almost three quarters of business travel expenses and cross-border invoices are not claimed back, representing a figure of €5.5 billion unclaimed refunds that businesses are entitled to.
Why? The current process is complex and costly both in time and effort. One of the main contributing factor to this figure is non-compliant invoices which are often billed to the name and address of individuals instead of the company.
How does the Taxeo solution work?
Taxeo has developed a turnkey solution that will be integrated into Europcar’s system. This solution is capable of managing legal accounting rules.
In a few clicks, error-free electronic documentation is produced. This details each claimable expense before being automatically sent as VAT refund requests to each relevant authority.
The Taxeo solution in detail
What was once a convoluted process has been much simplified and included into the Europcar business travel package. Business customers are no longer deterred from filing VAT returns of up to 20% on business travel!
Travelers simply show their Taxeo card at reception desks. Europcar automatically transfers electronic invoice data to Taxeo to create a compliant electronic invoice.
Taxeo’s system then analyses the detail of the expenses to identify expenses that may be claimed back and requests are sent to the relevant local authority.
Throughout this process, Taxeo cardholders can see for themselves the details of their expenses and track the progress of ongoing refund requests.
When a claim has been accepted, the refund is wired automatically to the bank account of the cardholder, who has not had to do any of the work.
Strengthen Europcar’s offer to business customers
Aware of complications in the VAT reclaim process, Europcar saw an opportunity to make its business car rental service even more competitive. By working alongside Taxeo, Europcar has been able to eliminate one of the time-consuming obstacles that stand before its business customers recovering VAT on travel expenses.