Every year companies lose a large amount of money because they are not deducting all the VAT that would be due to them. There are several reasons for this; the complexity of the process or the lack of specialized personnel for the task, but without a doubt one of the main and most widespread reasons is having tickets and not having complete invoices, so they end up accumulating large amounts of VAT in the form of simplified invoices that they never recover.
Companies accumulate VAT every year
Firms often work with an enormous number of different suppliers. As a rule, the usual ones directly issue the invoices for their services, but there are many others where employees make occasional expenses such as a meal, a toll or a night in a hotel, where they only receive a ticket or simplified bill. These types of documents are sufficient for the company to reimburse them, but they are not valid proofs for deducting VAT on the tax, as they lack the necessary information. As a result, companies end up accumulating thousands of tickets without recovering a single euro.
20 billion in unrecovered VAT is lost in Europe each year on travel and entertainment (T&E) expenses alone, a large part of which is accounted for by simplified invoices. This figure is even more striking because of the possibility offered by the tax authorities to recover VAT from previous years. Each country has its own terms, in Spain for example, you can deduct it from the last four years not prescribed, so the potential amount to be recovered is multiplied by 4. It is curious that having so much liquidity available to companies, there are still those who are not taking advantage of it.
Why is VAT not recovered from expense receipts?
On paper it seems simple to deduct VAT, after all you only need to replace the tickets with complete invoices, but in reality it is a complicated process when you want to put it into practice where it takes time to create a system that works and is profitable.
As we do not have all the necessary information we must replace the tickets or simplified invoices with complete invoices or redemption invoices (for expenses prior to one month). To achieve this, we need to process each of these documents, contact the tens or hundreds of different suppliers, ask them for the invoices while resolving their doubts and wait to receive them while we check that everything is correct.
It is a long process that requires the dedication of a specialized team. A solution that some companies use is to simplify the process by converting only those tickets that exceed a certain amount, thus reducing the volume of documents and their effort is more profitable, but this measure discriminates against the vast majority of tickets and therefore much of the VAT.
Converting accumulated VAT into cash
The 6dias VAT recovery service for expense receipts (T&E) was created in response to this problem and has been operating since 2008, allowing companies to recover their money without the difficulties involved in the process.
12 years of work has allowed us to build a solid system, based on technology and a specialized team, with which we process more than 60,000 tickets daily. Thanks to the volume of documentation that we handle and our relationship with more than 480,000 suppliers, we are able to process 100% of our clients’ tickets, without discriminating in amount, achieving a success rate of more than 80% of the VAT that can be recovered.
This means millions of euros recovered per year, a significant injection of liquidity for our clients, especially necessary in a time of instability and uncertainty like the present. If you want to start deducting the VAT that corresponds to you, do not hesitate to contact us.