What is VAT reclaim?

As a company within the European Single Market, you have the right to operate freely in any of the participating countries, on equal terms to local businesses. One of the benefits of this is that you can recover foreignly paid VAT when it falls under EU regulations.

Pleo can help you reclaim VAT paid on some foreign expenses made in 2021 and 2022 (up until December 31st, 2022). What are “foreign expenses”? A foreign expense is when you use your Pleo card for purchases in an EU or UK country that’s not where your organisation is registered. If your organisation is registered across different countries, then VAT reclaim is only possible for the countries where you are not registered.

Who qualifies for VAT reclaim?

  • You can take advantage of Pleo’s VAT reclaim service if:

  1. You are VAT registered, and

  2. Your Pleo account is registered in Denmark, Sweden, Germany, Spain, Ireland, or the UK.

  3. VAT reclaim is included in your Billing Plan:

  • Please note that if you sell goods or services that are partly or completely VAT-exempt, we can only reclaim part of your expenditure. What does this mean? If all the goods and services you sell are VAT exempt, your business will not be able to register for VAT. In turn, it won't be possible to reclaim any VAT on your foreign business purchases or expenses.

  • Non-reclaimable VAT includes:

  1. MOSS VAT on digital services

  2. VAT that should have been reverse charged

Is there a fee?

A fee of 20% on successfully reclaimed VAT will go to Pleo. If the claim is rejected by your tax authority, there will be no fee.

How to sign up

Please read the full terms and conditions before signing up for the service.

If you are an admin or a bookkeeper with extended access, you can sign your organisation up. Here's how:

  1. Log into Pleo on the web app

  2. Go to the People page

  3. Click "Add member" and then "External bookkeeper? Give them access"

  4. Select limited access

  5. Add Pleo Reclaim and VATreclaim@pleo.io

  • Extra step for customers registered in Denmark:

Is your Pleo account registered in Denmark? If so, we’ll send an email with a Power of Attorney document to be signed by an admin for your Pleo account.

After you’ve signed up

  • For customers registered in Sweden, Germany, Spain, Ireland, and the UK:

We will process all foreign expense claims, and email you the finished VAT reclaim application. We will send instructions for submitting the claims, but it will be your responsibility to file the application with your local tax authority.

  • For customers registered in Denmark:

Once you sign up, no further action will be required. Pleo will process your expenses, send the applications to the Danish tax authority, and handle communication with the tax authorities.

Good to know

Please note that there will be an extra fee in cases where:

  • Someone from Pleo contacts your organisation for missing information, and does not receive a response, and/or

  • You choose to opt out of the service after the application has been made,

a flat fee of DKK 1,495 per unsuccessful foreign VAT reclaim will be applied. This fee is calculated by the hourly rates charged for related financial services. If you wish to opt out of the service, please send an email to VATreclaim@pleo.io as soon as possible.

Pleo will put together a VAT application once every quarter up until the end of 2022.

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