London: 3rd March 2013
ExpenSys, the UK expense management provider to organisations as diverse as The CBI and Universal Music Group have announced that they will offer an indemnity to customers should they incur expense related tax penalties while using the ExpenSys software – virtually anywhere in the world.
This is a significant advance on the indemnity offered by Global Expenses, which covered VAT in the UK only. However, the methodology was different. Clients were obliged to send receipts to Global Expenses for manual review and assessment of the potential for VAT recovery. Global Expenses were purchased by Concur Technologies in 2011 and it is understood that the methodology is to be incorporated within the Concur offering.
The ExpenSys model is entirely different. The potential for VAT recovery is identified within the software itself and is fully automated. It is not necessary for customers to outsource local VAT recovery anywhere in the world, and cross-border VAT recovery may also now be identified automatically. Furthermore, the software also automatically identifies expenses that are subject to Corporation Tax thresholds in certain territories (e.g. Germany, Belgium and Sweden), these enhancements may also be covered by the indemnity.
ExpenSys has already rolled out the first generation of this new initiative in international tax compliance for a number of international clients. With this new internatioanal indemnity, it appears that ExpenSys are once again about to raise the bar.