EU VAT processing is available directly in the Expense app for all users, simplifying VAT management for purchases made in foreign currencies.
For organizations reclaiming foreign VAT within the EU, Expense has long supported this functionality on the web platform. Now, EU VAT processing is available directly in the Expense app for all users, simplifying VAT management for purchases made in foreign currencies.
How to Apply EU VAT in the App
When you make a purchase in a foreign currency and proceed to the accounting stage in the app, you will see three VAT options:
- Domestic with standard VAT
- Foreign without VAT
- EU VAT
Choosing EU VAT allows you to add the VAT amount based on your receipt, and the app will automatically allocate the VAT to the appropriate VAT accounts configured in your settings.
Handling Transactions in Foreign Currencies
For any transaction in a foreign currency, you’ll be prompted to select whether it should be classified as Domestic, Foreign, or EU VAT.
- Select EU VAT if the purchase qualifies.
- Enter the deductible VAT amount, and the app will apply this to the designated VAT accounts as configured in the admin settings.
This new feature ensures accurate VAT handling and integration with the accounting setup, making the entire VAT process smoother and more accessible in Expense.