Compliance – Tax & VAT

Local & International Cover

Local tax rules are automatically and effectively applied in each territory in which your organisation operates.

By complying with national tax legislation in every jurisdiction ExpenSys enables you to remain compliant whist exploiting every possible reclaimable opportunity.

One part of your organisation may be able to recover VAT, wholly or partially, another may not recover VAT at all. Both business and tax rules will vary, especially across territories.

Whether you have one business policy throughout your enterprise – or different rules across a variety of business units, companies or territories, ExpenSys can apply your expenses policy selectively.  For the first time, you really will be in control.

International Indemnity

All tax rules are agreed with every customer during implementation, applied automatically within the program and maintained by our configuration team. To the best of our knowledge no customer has ever been obliged to pay expense related tax penalties whilst using ExpenSys.

International tax rules are monitored constantly, and applied interactively according to the jurisdiction in which the current user resides and the jurisdiction in which the expenditure is being incurred. This is why ExpenSys is the only expense management supplier in the world to be able to offer an international indemnity against expense related tax penalties.

Shared Service Centres

ExpenSys is particularly effective for Shared Service Centres in international organisations. All the local knowledge normally held in each individual finance department is programmed into ExpenSys.

No matter how you need ExpenSys to operate, once set up – it will provide the appropriate format for each individual user, wherever in the world they are.

Corporation Tax

In some jurisdictions expenses are not deductible against corporation tax when above a given threshold. These thresholds will vary between different expense types in different jurisdictions and might be set by a specific amount per person (as in Germany, for example), or as a percentage of the whole (as in Belgium). Either way ExpenSys may be configured to apply the appropriate coding ‘out of the box’. Tax-Red

VAT Recovery

Put simply, ExpenSys is not concerned with how much VAT has been paid – it is focused on how much you can legitimately recover.

Systems that merely identify whether there is a VAT receipt are only doing half the job. Equally, leaving the claimant to assign a VAT code requires a level of knowledge which is unreasonable to assume.

We believe that claimants should not be expected to assign, calculate, or even enter amounts for VAT except in exceptional circumstances. Using the unique ExpenSys ‘Question and Answer’ methodology, recoverable VAT is calculated automatically or otherwise disabled entirely. After all, in the event of an audit by a local tax authority, under-claiming in some areas will not mitigate against penalties for over-claiming in others.

Cross-Border VAT

Because ExpenSys applies VAT rules automatically in every territory, identifying your foreign VAT recovery entitlement is straightforward. Information as to what consitutes a valid receipt appears clearly on every claim. The claimant need only indicate whether they have a valid VAT receipt and ExpenSys will do the rest.

For EU VAT, foreign claims may be made electronically in a local portal in the local language, and physical receipts are no longer necessary. With ExpenSys, the assistance of an outsourced VAT recovery agent is no longer required.

The ExpenSys VAT Report will allow you to know your exact position, territory by territory, anywhere in the world.

Employee Tax Liability

In many jurisdictions there are expenses which become taxable against the employee. For example, in the UK, this may be settled via P11D or PSA. All such expenditure may be identified and reported in ExpenSys and even items such as personal incidental expenditure (PIE) are identified with relevant thresholds automatically applied according to policy and jurisdiction.

Gifts, Entertainment & Subsistence

The treatment of gifts, entertainment and subsistence is more comprehensive in ExpenSys than in any other system. Amounts are automatically split between account codes on the basis of straightforward information provided by the claimant according to purpose, date, amount and jurisdiction. ExpenSys is the only system where the outcome is not dependent on claimants making allocations or choices which they do not understand.

Per Diems

Per Diems are captured comprehensively, allowing for times of travel and deductions for meals in hotels. Forms are designed to accurately satisfy the requirements of jurisdictions where rates are governed by statutory regulation, and may be held in either local or foreign currencies.

ExpenSys has been specifically designed to support:

Shared Service Centres:
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Business Policy:
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