Well-travelled IT professionals miss out on tax refunds

29.08.2006
Less than five percent of Australian enterprises bother to claim VAT (value-added tax) refunds after travelling to Europe each year.

In an industry as well-travelled as IT, this amounts to millions of dollars lost each year simply because IT professionals do not bother to recoup their money.

VAT Refund Director Geof Harland estimates Australian businesses leave behind a staggering A$2.6 billion (US$1.98 billion) each year because organizations are unaware of the reimbursement processes.

IT professionals travelling to Europe for conferences, trade fairs, or similar events are forced to pay tax on registration fees, hotels and other travel expenses in each country they visit.

It is similar to the 10 percent GST in Australia but is as high as 25 percent in Sweden or 17.5 percent in the United Kingdom (UK).

But this tax which is paid by Australian travellers in each country across Europe can be recovered if a claim submission is made by a specific deadline, usually within six months.