Intelligent VAT recognition and country-based VAT mapping

• 02/12/2025
• 3 minutes to read

Business value

Handling multiple VAT rates within the same expense type often requires extensive setup and manual corrections. In many countries, expenses such as meals or services, can have two or more VAT percentages. Moreover, previously each combination required its own expense type (for example, FOOD 19% and FOOD 9%).

With this enhancement, VAT recognition and posting become significantly more automated and consistent. The system now automatically detects the country, VAT amount, and VAT percentage, and uses this information to allocate the correct VAT Bus. Posting Group—directly inherited from Country/Region – Expense Management.

This reduces manual adjustments, removes the need to maintain multiple versions of the same expense type, and ensures more accurate and efficient VAT handling for both domestic and foreign expenses. Now with this feature, you only need to configure a country once (no more having to maintain setups for each expense type).

Feature details

This feature introduces VAT behavior that is driven by country-specific configuration and enhanced by automated recognition:

• You can now configure the VAT Bus. Posting Group directly in Country/Region – Expense Management.
• When a receipt is scanned, the AI Receipt Scanner automatically identifies the VAT amount, VAT percentage, and corresponding VAT Bus. Posting Group.
• VAT Mapping is now available to define multiple VAT percentages per country (for example 19% and 9% VAT rates for domestic use).
• Foreign country scenarios are also supported. For example, assigning a 0% VAT rate if applicable.

By combining automatic country detection with intelligent VAT recognition, the system removes the need enter VAT entries manually during the expense submission process, and ensures accurate allocation for both domestic and international expenses. This improves data quality, reduces setup duplication, and streamlines the overall expense-handling process.