Expense Management & Vat Compliance Partial Recovery

Introduction

One of the most important reasons for implementing an automated expense management system is to ensure compliance with government regulations on VAT and (often known as GST in some countries).

Rules regarding VAT Exemptions, and Partial VAT Exemptions (sometimes known as Apportionment Of Input Tax in Ireland) can be complex and its important when choosing your Expense Management Software to ensure that the application of these rules can be handled in a robust and easy to manage way.

 

systems@work Flowchart

VAT In expense@work

expense@work is used by organisations all over the world ranging in size from 20 to 5,000 employees. Almost all industry sectors use our software including Finance, Energy, Not For Profit, Professional Services, Government, Semi State, Sporting, Insurance and Technology. Our extensive experience in handling VAT and Taxation requirements of such diverse organisations has enabled us to develop and enhance our expense management solution to cater for all VAT, Taxation and Legislative requirements.

Related Article: Ensuring VAT Compliance

One of the most common questions we are asked relates to Partial VAT Exemptions and how our software can handle the sometimes very complex calculations associated with the scheme. All systems@work software (expense@work, time@work and forms@work) can be configured to cater for these requirements based on either The Standard Method or A Special Method (you can read more about this in the HMRC Notice relating to Partial VAT Exemption).

expense@work’s rules and configuration options can assist organisations in tracking Blocked Input Tax and Exempt Input Tax. In addition, the recoverable percentage of residual input tax can be held in system and calculated differently based on dimensions such as Department, Legal Entity or Cost Centre. The recoverable percentage can be varied by date and can also be retrospectively applied to previous expense claims if a quarterly or annualised adjustment is needed.

Please contact systems@work’s expense management experts to learn more about using our software to manage VAT and Partial Exemption.