Global business takes international savvy. Four things you should know about tax and reimbursement, plus tips on how to manage them.

Part I of the Concur Global Deployment Series.

Cash Advances

Car Reimbursement

Travel Allowances

Value Added Tax (VAT)

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Value Added Tax (VAT)

Value Added Tax (VAT) is imposed on all levels of the manufacture and production of a good or service

It’s based on the increase in price or value per each level

Raw goods Finished products

Wool turned into fabric increases its value:

fabric is taxed.

Raw materials, like wool,

are not taxed.

Fabric turned into clothing increases its

value: clothing is taxed.

The word “simple” is rarely applied to tax laws.

So please enjoy this simple VAT overview.

Domestic

For companies operating in a VAT-levying country, tracking and reporting VAT is critical

VAT data must be reported to the government, on a periodic basis

Belgium’s tax authorities do not accept

electronic receipts.

Business travel abroad can be quite taxing.

Especially if you’re not effectively tracking VAT.

Company pays VAT when employees travel to VAT-levying countries

VAT tracking is not required, unless company is reclaiming the VAT

Legal requirements to reclaim VAT are complicated and vary per country

International

Tip: Tracking hard costs demands great software. Regardless of company size and locations, you need a T&E solution that seamlessly integrates international taxes, like VAT and GST (Goods and Services Tax), directly from credit card statements.

Business travel abroad can be quite taxing.

Especially if you’re not effectively tracking VAT.

Only 11 countries

and 9 territories (including the U.S.)

do not levy VAT.

Cash Advances

Tip: The ideal T&E solution allows a user to request a cash advance and apply it to the expense report. Enabling the creation and processing of cash advance requests through a formal approval process is invaluable.

Mexico India Cash advances are common. In some companies they are a business requirement.

Cash advances can be limited based on the budgeted per diem for the trip.

In some regions, cash advances are still common – especially in areas with limited credit card acceptance.

Countries may insist on handing out money. Know where cash advances are still commonplace.

Travel Allowances

Tip: Leverage a global expense management solution that efficiently configures travel allowance to meet the needs of country-specific requirements.

Fixed Employee reimbursed a fixed rate regardless of actual amount of expenses.

Like they say, just follow the money. Track both types of Travel Allowance.

Reimbursable There is a schedule of reimbursement rates, but employees may not be paid that rate.

Travel allowance calculations can be very intricate

They require specific information on every travel detail for proper reimbursement calculation

Germany Travel allowances are required

for expense reporting.

Tip: Per diem and travel allowance approaches vary greatly, so embrace a solution that supports every practice — including complex time-based per diems as well as both CONUS and OCONUS rate tables.

In some countries, the law

requires travel allowances for all

expense reporting, or in conjunction with specific government

or commercial contracts.

A travel allowance differs from a cash advance

“Travel allowance” and “per diem” are employee travel expenses that are reimbursed according to a schedule of set reimbursement rates

Travel allowances should allow for flexibility. Put a smart system in place.

Car Reimbursement

United States Employees commonly use their personal automobile for business needs such as driving to the airport.

France People with a business use requirement are typically issued a company car or receive a car allowance.

Mexico Employees hire cars for ground transportation.

Tip: Be sure your local team understands the common practices in the country and understands taxation requirements, especially if cars are issued for business travel needs.

No need for a bumpy ride. Car Reimbursement can be smooth.

Expert Tracking

Seamless Integration

Experienced Knowledge

Trusted Guidance Worldwide

Does your current global expense management software meet our standards?

Automatically adjusts to global currencies and tracks tax, VAT, GST

Tracks per diem rates including time-based travel allowance and company car reporting

Single site for employees, at any location

Available in 15 languages to view in preferred language

Surfaces inventory for international airlines, hotel and rail for numerous travel options

Supports global reporting capabilities and data consolidation

Unrivaled experience and success in global deployments

Proven methodology for global deployments

Supports local and global policy application based on business unit

We’re in over 100 countries worldwide

Over 10 % of the U.S.’s T&E spend goes through Concur

Our software processes over 55 million customer transactions annually

Over half of the Fortune 500 are Concur clients, including seven of the top 10 U.S. companies

Learn how Concur can help your business at Concur.com.

Look for more SlideShares from the Concur Global Deployment Series.