When claiming reimbursement for business expenses it is important to understand the different documentation requirements. Prior to reimbursing business expenses, Deel must ensure that all documents comply with local tax and regulatory requirements. This often includes ensuring that the tax invoice or payment receipt includes the necessary components to qualify for reimbursement.
What is a Tax Invoice
Tax invoices are issued by the seller of goods and contain all the necessary information for tax reporting, including information about both the buyer and the seller, a description of the goods or services, the quantity, the price per unit, the total price, any applicable tax rate, the total taxes paid.
A tax invoice will include the necessary tax identification number of the seller and - if applicable - the buyer.
What is a Payment Receipt
A payment receipt is an accounting and record keeping document that includes information about the buyer and the seller, the amount paid, the date of payment, and the payment method. These documents are not usually accepted for tax reporting purposes.
Frequently Asked Question
[ACCORDION] Why is Deel asking for a Tax Invoice?
Deel will require a tax invoice when this document is necessary for tax reporting purposes according to local law. In most jurisdictions where a tax invoice is common, sellers are equipped to provide a tax invoice on request. If an employee is unsure they will be able to obtain a tax invoice they should request one up front prior to making the purchase.
[ACCORDION] How to request a tax invoice
You can request a tax invoice directly from the seller of the goods or services you are claiming. It is usually a good idea to request a tax invoice prior to making your purchase but you can often contact the seller afterwards to request a tax invoice. Many sellers, including airlines, hotels, transportation companies, rental companies, and others can generate a tax invoice on request.