Whether renting a car or booking a hotel, travelling for business in Europe incurs VAT costs.Europcar, the leading car rental provider in Europe and a major mobility player, and Taxeo, the leading provider of paperless VAT refund services, have entered into a partnership to enable their mutual clients to reclaim VAT quickly and easily according to local legislation.
The unique innovation developed by Taxeo receives electronic invoice data from Europcar and creates tax-compliant electronic invoices that are used for VAT recovery.
Thanks to this partnership, Europcar Corporate customers are set to make significant savings.
Jean Cazes, CEO of Taxeo, called it a "milestone" in VAT recovery for business travel expenses. "This means that we are able to reduce car hire costs for our mutual clients by up to 15%. Our solution is very simple for companies and travellers to use. Moreover, it brings the additional benefit of tax-compliant e-invoices and structured data for expense management" Cazes added.
Marcus Bernhardt, Chief Commercial Officer of the Europcar Group also sees the partnership with the French company as a "wonderful opportunity" for the business: "This addresses the price-sensitivity of our corporate clients and boosts our competitiveness and differentiation without impacting our revenues and commitment to service."
Every year companies lose out on €5 billion VAT incurred on international travel. Today's manual paper-based VAT recovery process, especially for travel expenses like hotel, car rental, conferences, etc., is complex, expensive, and inefficient, due mainly to non-compliant or lost invoices. The Taxeo solution addresses these issues. What's more, a majority of small and medium-sized enterprises (SMEs) are often unaware that VAT can be refunded for business trips or how to apply for refund.