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Many companies whose personnel
travel on business to Europe are not aware that they are entitled to reclaim the Value Added Tax (VAT) charged on many of the expenses incurred by them. Those who are aware of this benefit and have attempted to reclaim business related VAT have found it to be a formidable and time consuming exercise.
VAT i.e., Value Added Tax, is a tax paid by the purchaser on general consumer expenditures on the purchase of goods and services. When translated into foreign languages, the words ‘Value Added Tax’ are changed. common abbreviations are listed below:
• UK: VAT - Value Added Tax
• France: TVA – Taxe sur la valeur ajoutee
• Netherlands: BTW— Belasting over de toegevoegde waarde
• Germany: MWST – Mehrwertsteuer
• Sweden: MOMS– Mervardeskatt
• Italy: IVA – Imposta sul valore aggiunto
The refund of VAT on business expenses is permitted to enhance trade with the European union as well as to create a level playing field between members of the European Union and other countries. Mauritian companies have qualified for these refunds in accordance with the 13th Directive.
The EU 13th Directive allows VAT charges incurred in the EU by businesses residing outside of the EU (such as USA) to recover this VAT in most instances.
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