Europay International has received its first VAT (Value Added Tax) accreditation from the tax authorities in Sweden. The initiative is part of a pan-European programme to provide Purchasing Card holders with a facility for reclaiming VAT payments using electronic invoicing.
"The Swedish certification is the first in a series that we expect to negotiate before the end of 2001," says John Bushby, marketing director, Europay International.
He says the list of what is and is not VAT-exempt for businesses is complex, variable by country, and requires a clear audit paper trail. "Electronic invoicing means that businesses using a Eurocard-MasterCard Purchasing Card will be able to simplify paperwork and reduce their costs significantly," he adds.
The new VAT functionality will provide businesses with itemised reports recognised by national governments that identify VAT.