Reclaim VAT for expenses


#1

I’m trying to get my head around all the accountability issues of using Revolut for Business and maybe some of you can help me.
I have 2 companies: one in France and one in the UK.
I have employees both in France and in the UK.

My Revolut for business account is linked to my UK Company. I have 2 Accounts in my Revolut, one in GBP for UK and one in EUR for France.

For all the expenses of my employees in both France and UK I want to be able to reclaim VAT.

How is that possible considering that the Main account is linked to the UK Company? If I pay with some of my Revolut Cards linked to the EUR account how am I able to reclaim VAT?

Does that make sense?

Thanks for your feedbacks/help


#2

You reclaim VAT by submitting a VAT return, usually by offsetting your input VAT against your output VAT that you owe to HMRC. What does this have to do with Revolut?


#3

It has.

If I want to reclaim VAT to my expenses in France, they need to be paid with money coming from my French bank associated to my French company.
Same goes with the UK and HMRC.

Revolut is only linked to One company. Hence why I’m asking if someone already had the issue.

Regards


#4

This applies to any company debt. It is not specific to VAT. If one company owes money, that that company needs to pay the money.

Are you sharing one account (or one banking relationship) across two companies? If so, you shouldn’t do so. Open a separate account for each company.


#5

Both companies have different bank account but they have the same Revolut main account in which then I created a GBP and a EUR account.

Maybe it’s best to have one Revolut account for each company but that defeats my purpose of simplifying everything.
I’m not very aware of all complexities of such setup though.

Any advice is greatly appreciated.

Thank you again


#6

It’s not just “best”, but essential. Two companies can’t share one bank account, whether it’s Revolut or a traditional bank.

This thread should be titled “Sharing Revolut account across multiple companies”, not anything about VAT.


#7

It’s a legal requirement in many jurisdictions for a company to maintain its own bank account, and to avoid co-mingling funds. It would present all manner of problems otherwise - not least ownership of funds, custodian relationships, etc.

You need to be keeping accounts separate. As @NFH rightly said, this has nothing to do with VAT, and everything to do with separation of concerns between your various companies/businesses.

Edit: Apologies for the bump. Hopefully you’ve solved this by now!


#8

Thanks lee.

Yes I’m awaiting the creation of my second revolut account.

Thanks for the info. Makes perfect sense.

Regards.

Thibaut Bellon
Sent in mobility