To receive refunds on eligible value-added tax (VAT) transactions, a company or organisation must identify, collect, verify, and submit accurate information. This process includes multiple tasks and, depending on the size of your company, can include several employees or roles.
To recover VAT in the Expense management module, the following prerequisites must be completed:
- Tax codes must be created for countries/regions that are allocated to expense categories.
- A sales tax group must be created for each tax code.
- An item sales tax code must be created for each sales tax group.
After the prerequisites are completed, the following steps must be completed to request refunds for VAT transactions.
- On an expense report, enter tax information about credit card transactions to identify eligible VAT refunds.
- Verify that all tax information is complete, and then post the expense report.
- Process expenses that are eligible for international VAT recovery.
- Send VAT recovery data to the third-party vendor to file international recovery returns.
- Process expenses for domestic VAT recovery.
For more information visit VAT recovery | Microsoft Docs