Sunday, 22 March 2020

How to manage occasional suppliers during business trips and recover vat


With the introduction of compulsory electronic invoicing, the management of expense reports for employees on the road has also changed. It is therefore necessary to make use of innovative software platforms that allow an automated and controlled process from the generation of expenditure (and therefore of cost) to accounting and liquidation. Only in this way can VAT recoveries become extremely advantageous for the company.

What changes in the employee expense report

Everyone knows the classic procedure for managing employee expense reports. Once away, they always collected receipts, tax receipts and invoices, to be presented on return to the employer - as proof of the expenses incurred - to receive a refund. With electronic invoicing, however, this method can go to the attic, to pave the way for the possibility of digitizing the entire process and automating VAT recovery without necessarily proceeding with the old manual administrative methodology.

To deduct the VAT of the expenses shown in the expense report - especially for food and lodging - it is necessary to leave receipts and tax receipts behind, to go to the electronic invoice. The same employee on the road must therefore request the electronic invoice, correctly registered to the company for which he works.

What are the consequences of this small revolution?

First of all, companies must equip themselves with tools to better manage the travel and expense report management process that can support a digital process also for the documentary part. Secondly, it should not be forgotten that this new opportunity has allowed companies to request electronic invoicing also from many suppliers who, before today, issued almost exclusively receipts - it is not at all rare, in fact, to find in the expense reports not only the costs incurred at hotels and restaurants, but also those relating to bars .

Thanks to electronic invoicing, once the necessary procedures have been started and employees trained , it is therefore possible to simplify the management of travel expense reports. In fact, the company sees electronic invoices relating to expenses incurred by employees at suppliers that are completely occasional delivered directly to the Exchange System.

The employee's precautions

But how should the employee do to facilitate the management of expense reports? For companies that have not yet adopted travel management software platforms , it is always advisable to note the reference of the electronic invoice issued or, if necessary, to be issued by the operator a courtesy copy of the same, which as is known will have no tax value.

In the event that, for the most varied reasons, it is not possible to receive the courtesy copy of the invoice - the issue of which is obviously not mandatory - the employee on the road should opt for a traceable form of payment.

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