Visa is implementing an automated way for corporate users of its cards to recover taxes and has chosen a partner to help in the process. Reports published Monday (Dec. 14) said Visa will be working with Taxback International, a company that provides value-added tax (VAT) recovery services.
Businesses using the Visa Business Card can more easily recover VAT funds with less friction with regards to sorting out which transactions are eligible for such refunds.
“Claiming VAT refunds requires a substantial investment of time and resources to ensure compliance with specific requirements in each country,” said Visa Head of Small Business Products in Asia-Pacific Vikram Kshettry.
[bctt tweet=”‘Claiming VAT refunds requires a substantial investment of time and resources.'”]
Kshettry added that companies whose employees use a company card when they travel can also run into challenging hurdles regarding the various tax rules of different jurisdictions.
“Businesses, especially those with frequent international travel, can save significant amounts if they effectively manage their VAT,” the executive stated.
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Visa’s corporate cards are now integrated into Taxback’s software, which can analyze transactions made on the card to identify purchases eligible for VAT recovery, the companies said. Tax reclaims can be directly deposited into corporate bank accounts and allow businesses to avoid cross-border barriers to these claims, like language and time zones.
Taxback claims can be paid in the currency decided on by the business, the companies added.
