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VAT (Value Added Tax) Refund Procedure Manual

Procedure:  Entering a VAT (Value Added Tax) voucher in Spectrum.

Use: In order to facilitate the reclaim of VAT from European countries or Goods and Services Tax from Canada, vouchers must be marked VAT applicable in Spectrum. To indicate that a voucher is VAT applicable a very small amount of additional information must be entered in Spectrum.  Other than this one additional step, all other voucher data entry remains unchanged.

Required Tools: Access to Spectrum and travel invoice or employee expense statement.

Due Date: Processed as needed by GSU departments based on travel or receipt of a VAT invoice.

Required Steps:

1. Flag a Spectrum voucher as VAT applicable.
2. Physically indicate at the top of the invoice or employee expense statement that the invoice\expense statement is VAT applicable and forward to the Disbursements Office.

Step #1 - Flag a Spectrum voucher as VAT applicable.

1. The process of entering a 'VAT' voucher differs only by the addition of one step.  Other than this new step all other data entry for the voucher remains the same.  However, this new step must be completed prior to budget checking the voucher.

2. Click on the 'Comments' tab.  To indicate a voucher is VAT applicable a small amount of additional information must be entered on this panel.   This information must be entered exactly as instructed.

In the 'Voucher Comments' field enter the word VAT, space, dash, space and the country name (see below). The country name entered should be the country from which VAT should be reclaimed. For example, for travel from Atlanta, Georgia, USA to Paris, France "VAT - FRANCE" would be entered.  No spaces should precede the word VAT.  All VAT information should be entered in all capital letters.  If additional comments need to be included, skip a line and enter those below the VAT information.

3. Click on the 'Accounting Information' tab.  Click the 'Budget Check' icon.

Once the Budget Checking process has successfully completed the following dialogue box will appear.  Click Yes. 

4. Click on the exit icon to exit the voucher and close Spectrum.

Step #2 - Physically indicate at the top of the invoice or employee expense statement that the invoice is VAT applicable and forward to the Disbursements Office.

1. Before forwarding the invoice or employee expense statement to the Disbursements Office for payment, physically write the word "VAT" at the top of the invoice or employee expense statement.

2. Vouchers will not be submitted for VAT reclaim until payment has been made.

3. To ensure you bring back the proper type of receipts for VAT to be reclaimed, follow the guidelines below. These guidelines are in addition to current University reimbursement requirements and guidelines.

• The receipt MUST be original and final. - A photocopy, fax or any receipt that says "copy", "information only", "preliminary", "view", or, more obviously, "this is not a VAT receipt" is not acceptable to tax authorities.
  
  
• Hotel and car rental receipts - Please check in with your own name and also the University's name. Use the University's address not your personal address. This is particularly important in Belgium, Germany and Switzerland.
  
  
• Date of the transaction - Make sure the date of the transaction is on the receipt.
  
  
• Name and address of supplier - Make sure the name and address of the supplying company (hotel, restaurant, etc.) is on the receipt
  .
• Adequate description of goods or service provided - This is particularly important for restaurant receipts; it is also important to record the names and affiliations of all the diners on the receipts.
  
  
• Rate and breakdown of the VAT - This is required for all high value receipts. In the UK invoices with gross amounts less than 100 British pounds and in Germany less than 200 DM need not carry this.
  
  
• For travel in the United Kingdom the VAT registration number must be on the receipt. - It is ESSENTIAL that the VAT registration number be on the receipt for UK travel. For other European countries, this is not essential. A VAT registration number is issued by the country's tax authority and is similar in theory to a US tax id number. A UK VAT registration will begin with the letters 'GB' followed by a nine-digit number. As an additional note, Avis car rental receipts issued in the United Kingdom will not carry the VAT registration number. This is the ONLY receipt you should accept in the UK without the VAT registration number.
  
  
• Credit card charge receipts are generally NOT acceptable by themselves. - The newer style, computer generated credit card receipts may, however, be acceptable if they show the items listed above.
  
  
• Euro Currency - Many European countries now accept the 'Euro' in addition to their local currency. The type of currency tendered has no impact on VAT reclaim. The guidelines above continue to apply and VAT reclaim is handled in the exact same manner regardless of currency. In countries where the Euro is accepted the only noticeable difference will be that two amounts may be listed on the receipt. One amount in Euros the other in the country's local currency.