Global Business Takes International Savvy


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Global deployment is complex, to put it mildly. To learn more, "Global Business Takes International Savvy" delves deeper into taxes, VAT, reimbursements and what you should consider when going global. Whether you’re thinking of taking your company overseas or looking for ways to improve the visibility on where your business’s money gets spent, we can help. Here’s how:

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Global Business Takes International Savvy

  1. 1. 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.
  2. 2. 1 2 3 4 Value Added Tax (VAT) Cash Advances Travel Allowances Car Reimbursement
  3. 3. Value Added Tax (VAT)
  4. 4. The word “simple” is rarely applied to tax laws. So please enjoy this simple VAT overview.  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 Raw materials, like wool, are not taxed. Finished products Wool turned into fabric increases its value: fabric is taxed. Fabric turned into clothing increases its value: clothing is taxed.
  5. 5. Business travel abroad can be quite taxing. Especially if you’re not effectively tracking VAT. Belgium’s tax authorities do not accept electronic receipts. 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
  6. 6. Business travel abroad can be quite taxing. Especially if you’re not effectively tracking VAT. International Only 11 countries and 9 territories (including the U.S.) do not levy 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 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.
  7. 7. Cash Advances
  8. 8. Countries may insist on handing out money. Know where cash advances are still commonplace. 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. 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.
  9. 9. Travel Allowances
  10. 10. Like they say, just follow the money. Track both types of Travel Allowance.  Travel allowance calculations can be very intricate  They require specific information on every travel detail for proper reimbursement calculation Fixed Employee reimbursed a fixed rate regardless of actual amount of expenses. Reimbursable There is a schedule of reimbursement rates, but employees may not be paid that rate. Tip: Leverage a global expense management solution that efficiently configures travel allowance to meet the needs of country-specific requirements.
  11. 11. Travel allowances should allow for flexibility. Put a smart system in place. Germany Travel allowances are required for expense reporting. 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 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.
  12. 12. Car Reimbursement
  13. 13. No need for a bumpy ride. Car Reimbursement can be smooth. Mexico United States France Employees hire cars for ground transportation. Employees commonly use their personal automobile for business needs such as driving to the airport. People with a business use requirement are typically issued a company car or receive a car allowance. 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.
  14. 14. Does your current global expense management software meet our standards? Expert Tracking  Automatically adjusts to global currencies and tracks tax, VAT, GST  Tracks per diem rates including time-based travel allowance and company car reporting Seamless Integration Experienced Knowledge  Single site for employees, at any location  Unrivaled experience and success in global deployments  Available in 15 languages to view in preferred language  Proven methodology for global deployments  Surfaces inventory for international airlines, hotel and rail for numerous travel options  Supports local and global policy application based on business unit  Supports global reporting capabilities and data consolidation Trusted Guidance Worldwide  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
  15. 15. Learn how Concur can help your business at Look for more SlideShares from the Concur Global Deployment Series.
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