Yokoy can manage foreign VAT reclaim in two ways:
Internally, using its own tax rate setup
Via a VAT reclaim provider,
Managing foreign VAT reclaims internally
If your organization handles foreign VAT reclaims manually or through internal processes, you can create all applicable foreign VAT rates in Yokoy.
This allows Yokoy’s AI to automatically match foreign VAT amounts on expenses to the correct reclaimable rates, facilitating the internal submission process.
✏️ Note
For any specific questions about reclaim eligibility, status of refunds, or accounting treatment of reclaimed VAT, please reach out directly to your VAT recovery provider.
Using a VAT reclaim provider
If your organization works with a VAT reclaim service provider, there is no need to create foreign VAT rates in Yokoy.
Yokoy offers a number of VAT reclaim integration partners that enable organizations to streamline the process of identifying and reclaiming VAT on eligible expenses by automatically synchronizing relevant financial data between the two systems.
In these cases, Yokoy establishes a secure SFTP connection with your VAT provider. All relevant expense data and receipts are shared securely. The VAT provider applies their own jurisdiction-specific expertise to identify claimable VAT.
Since the reclaim process is fully managed by the provider, Yokoy does not require foreign VAT rates to be configured in this scenario.
VAT reclaim adjustments and ERP integration
While Yokoy facilitates expense processing and prepares VAT-related data, any adjustments resulting from VAT reclaims, i.e. journal entries or corrections in your finance system, are outside the scope of Yokoy.
If your reclaim provider sends you a reclaim report or credit note:
You may need to post manual accounting entries in your ERP system (e.g., reversing previous VAT costs or allocating reclaim revenue).
These adjustments should follow your internal finance policies or be discussed with your accounting team.
❗️ Warning
Yokoy does not handle accounting reconciliations or VAT revenue recognition.
It only processes expenses and exports the relevant data to your respective finance system.