Airbus_VATRecovery_VAT4U

Discover how Airbus has increased VAT recovery by 136%

Industry: Aerospace

Revenue: 70 billion EUR (2023)

Employees: 134.000

Global Group Contract

Scope: Local and Foreign T&E

Airbus was in the process of redesigning their Travel Expenses process, with the objective of fully digitizing the system to minimize paper use as much as possible. The digitalization aimed to achieve a high rate of centralized payments, ideally between 80% and 90%.

Airbus had already successfully implemented this centralized payment system for airline tickets quite some time ago and was now looking to expand its application to include other expenses such as hotel stays, restaurant meals, and car rentals, in collaboration with many partners.

The optimization of the VAT management process and recovery was a crucial aspect of this digitalization effort. At that time, the process was largely manual and not optimal for either travelers or accounting teams.

In this context, Airbus chose VAT4U as a strategic partner to streamline and automate their VAT management process, selecting it for its advanced technology and optimal integration with their new Travel Expenses system and partners.

The Challenge

Before the VAT4U collaboration, Airbus struggled with a heterogeneous approach to managing VAT on travel expenses, characterized by manual processes and a lack of uniformity across different countries and even within the same country.

The diversity of these processes, along with the requirement for seamless integration with various travel-related expense tools, presented a significant challenge.

Airbus needed a solution that could not only handle the intricate details of VAT management on a global scale but also align with its vision for a streamlined, paperless, and highly efficient Travel Expenses system.

VAT4U’s solution was selected for its ability to integrate seamlessly with Airbus’s systems, offering a comprehensive externalization of VAT management that significantly simplified internal processes. This externalization was crucial in overcoming IT security challenges and connecting with external tools without direct IT integration.

The solution included:

  • Automation and digitalization of the entire travel expense management process.
  • Integration with Third-Party Providers to implement a centralized payment system.
  • Complete Outsourcing of the VAT Management Process to VAT4U: from assessment of invoice compliance, tax determination and preparation of VAT reports or VAT refund reports or VAT refund claims for 100% of transactions

The Solution

The Outcome

The implementation of VAT4U’s solution yielded remarkable results:
  • The cost of the VAT recovery process for travel expenses was divided by 10
  • There was a 136% increase in VAT claims both domestically and internationally
  • The implementation of VAT4U has enabled Airbus to secure millions of euros on both T&E and AP transactions.
  • The efficiency, compliance, and cost-effectiveness of the VAT management process saw significant improvements

In 2024, Airbus plans to deploy VAT4U in other regions using SAP Concur such as the United States, Canada, Sweden, or Singapore.  

Airbus_VAT4U_Our aim

Based on an interview with Christophe Dars, Product Owner of Travel & Expense at Airbus, February 2024.

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