NEW YORK -- American business travelers can save money on European purchases by using their MasterCard International BusinessCard.
The MasterCard VAT Reclaim Service, streamlines the procedure for recovering value-added taxes paid on almost all goods and services purchased in the European Community.
U.S. companies are entitled to a refund of the tax, which can add up to 25% to each purchase, but many don't bother applying because of the complicated refund process. Some companies are not aware that they qualify for a refund.
MasterCard has partnered with Foreign Exchange Co. of Ireland, a VAT reclaim specialist, to offer the service.
U.S. companies call an 800 number to receive a fulfillment kit, complete a MasterCard VAT Reclaim Service application form, provide original sales receipts, and sign a power of attorney form.
Foreign Exchange Co. takes it from there, working with local governments to reclaim the taxes incurred.
The U.S. company receives a refund on its account when the process is completed.