Printer Friendly

AMERICAN EXPRESS LAUNCHES PROGRAM TO HELP CORPORATIONS RECAPTURE FOREIGN VALUE-ADDED TAXES

 AMERICAN EXPRESS LAUNCHES PROGRAM TO HELP CORPORATIONS
 RECAPTURE FOREIGN VALUE-ADDED TAXES
 NEW YORK, July 14 /PRNewswire/ -- American Express has targeted the growing pool of refundable value-added taxes (VAT) paid to foreign governments as another means to capture cost savings for its Corporate Card clients.
 The company's Travel Management Services (TMS) unit today announced that it will provide consulting services and a special management information system (MIS) report to help guide clients through the regulatory maze surrounding the refund process. The report will be available to American Express clients beginning Sept. 1.
 "As international travel increases, corporations are forfeiting more and more money by not claiming VAT refunds," said Jud Linville, vice president of Consulting Services, American Express Travel Management Services. "Until now, however, only a handful of multinational corporations recognized the opportunity or found that the reward was worth the effort.
 "With this new program," said Linville, "corporations now have the ability to identify their refund potential and to substantiate their claims through Corporate Cardmember information. And for a large multinational corporation, VAT refunds can amount to millions annually -- savings that drop directly to the bottom line."
 VAT taxes are imposed by at least 17 nations, with percentages ranging from 7 percent in Canada to 25 percent in Denmark. International tax experts estimate that for every $1,000,000 spent on travel and entertainment (T&E) by U.S. business travelers in VAT countries, as much as $50,000 collected in value-added tax is eligible for refunding.
 To advise clients on the VAT refund process, the Consulting Services group has published a brochure, "VAT Refund: How Your Company Can Recover the Value-Added Tax Paid by Employees Who Travel on Business in Europe and Canada." The booklet includes a directory of tax refund offices in major European nations and Canada, as well as a detailed listing of taxable items and taxation rates in each country. Consulting Services will also be counseling Corporate Card clients individually on the feasibility of a tax refund program.
 For companies that would like to pinpoint their savings opportunities, American Express has developed a new MIS report for Corporate Card clients. The report tracks a firm's travel and entertainment spending in European markets and Canada, analyzing the company's total VAT eligible spending (country-by-country). This allows the company to estimate the potential dollar value of available refunds.
 Collecting VAT Refunds Complicated
 Although all nations have procedures in place enabling foreign businesses to recover a portion, or all, of value-added tax monies, the process can be complicated and time-intensive.
 "Collecting refunds on VAT is a massive paper chase," explains Mike Godbee, European tax expert with the international accounting firm of Coopers & Lybrand, New York City. "The amount of documentation needed -- coupled with constantly changing eligibility requirements, regulations, time limits, refundable categories, and submission procedures -- are enough to overwhelm even the most sophisticated travelers and companies.
 "American Express' new VAT report and information booklet will help companies decide whether the administrative costs of a refund program justify the work involved," he said.
 By providing monthly breakdowns of eligible expenses for each Corporate Cardmember, the VAT report lets a company estimate the amount of money it can profitably recapture.
 On the report, VAT payments are listed by country and by - vendor category including gasoline, rental cars, hotel accommodations, rail and air travel, and meals. The report also identifies which of the original purchase receipts must be submitted with refund application forms and expedites the collection of those receipts.
 Consulting Services Assist Clients
 The VAT refund program represents the latest development from TMS' highly regarded Consulting Services group, a full-time staff of travel management experts who help clients develop and administer travel policy, analyze industry trends and identify new techniques to manage T&E expenses.
 The Consulting Services group also publishes the biennial "American Express Survey of Business Travel Management," which will be released, in its sixth edition, this fall.
 American Express Travel Management Services, which includes the American Express Corporate Card and Business Travel Services, assists companies in managing and controlling their business travel expenses. It is a unit of American Express Travel Related Services Company, Inc., a wholly-owned subsidiary of the American Express Company (NYSE: AXP) -- a family of travel, financial and communications businesses.
 -0- 7/14/92
 /CONTACT: Christine Levite, American Express, 212-640-3382 or John Henderson of Gavin Anderson & Company, 212-921-1060, for American Express/
 (AXP) CO: American Express Company ST: New York IN: FIN SU: PDT


SH -- NY012 -- 8971 07/14/92 09:17 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 14, 1992
Words:746
Previous Article:FABRI-CENTERS ANNOUNCES COST-CUTTING MEASURES, STOCK REPURCHASE AUTHORIZATION AND EXECUTIVE RESTRUCTURING
Next Article:WESTINGHOUSE CREDIT REPORTS SECOND-QUARTER RESULTS
Topics:


Related Articles
Restrictions on the deductibility of U.K. branch losses.
AMERICAN EXPRESS CORPORATE CARD LAUNCHES AGGRESSIVE MARKETING CAMPAIGN; HIDDEN CHARGES BY BANK CARDS TARGETED IN NEW ADS
Avoiding potential disallowance of foreign branch losses.
DELTA AIR LINES AND AMERICAN EXPRESS TO OFFER COBRANDED CREDIT CARD
S elections and LIFO recapture.
American Express Finds and Refunds More than $2.5 Million in 'Lost' Electronic Tickets with New Service for Corporations.
e-business: Launch of new global payment service.
Foreign Corporations with Income Effectively Connected with a U.S. Trade or Business, 1995.
Final regulations on dual consolidated losses: a practical guide (Part II): originally enacted in 1986, the dual consolidated loss (DCL) rules are...

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters