The rise of Bleisure, and how to navigate your expenses to ensure compliance.
Bleisure travel is not a surprising or a new phenomenon. It has been brewing for quite some time and is the direct product of specific socio-economic factors:
- Millennials Leading by Example – Research into the practice of bleisure reveals that firmly at the forefront of this trend are the millennial age group. Millennials are more flexible in how they mix their personal and professional lives, making them more opportunistic towards enjoying their business travel to the fullest. There is also the drive to achieve as much as possible as soon as possible.
- Transportation Costs Are Low – Plane tickets have been enjoying a steady price decline, making travel all the more affordable. A sudden work trip then becomes a surprise getaway for a couple looking to build a repertoire of romantic travel stories, because it won’t take too much time to save money for the trip.
- Companies Are Supportive – Current HR practices adopt a more caring approach towards their staff. Employee wellbeing has risen in importance within the corporate world. Whereas a decade ago, vacation days were something of a coveted treasure, the environment now has relaxed quite a bit. As long as you achieve your objective on your trip, what you do in your spare time is not an issue.
But What Can Be Claimed as an Expense?
The confusion surrounding bleisure travel usually begins after you’ve returned home, unpacked the suitcases and returned to HQ with an expense list. Which expenses are directly pertaining to the business trip, and which are personal leisure expenses? The golden rule of thumb dictates that only expenses that are absolutely necessary and directly related to the business can be deductible.
Deductible travel expenses generally include transportation, accommodation, rental fees, meal expenses and entertainment, if it’s to do with networking or wooing a client. It’s important to emphasize how only the employee benefits from these deductions. It is safest to clear up how far travel expenses go and what’s included with your HR department, prior to the trip.
Still – there’s rich ground for confusion and mistakes.
VATConnect Ensures Compliance!
Good news, you can now eliminate all the confusion while on your trip!
Enable VATConnect- Real-Time Validation (created and powered by Taxback International) and you’ll be set.
VATConnect- Real-Time Validation is an all-purpose, one-stop app that validates receipts and invoices in real time. Employees on the go don’t have to worry about saving every receipt and invoice, or organizing them meticulously.
VATConnect is compatible with multiple Expense Management Systems and has instantaneous connectivity to the Taxback International VAT intelligence engine. The platform automates a lot of the processes, including constantly updating VAT rules & regulations.
Input your invoice, and you’ll know within seconds, if you’re within compliance or not. Orchestrating business trips is now a fully streamlined process.
Contact our team of VAT experts to get more insight into how Bleisure could be having a major effect on your VAT reclaim.
We know that Indirect taxes such as VAT and GST can have a huge effect on your business. As VAT rates change sporadically keeping yourself informed can be difficult. Compliance is always crucial. That’s why our Indirect Tax Experts share their hand-picked news stories every day that you need to know. From breaking news to VAT changes and new EU legislation. We know that relevant information means better decision making. We aim to be your number 1 source for VAT and GST news.
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