# Value-Added Tax (VAT)

Get answers to all of your questions regarding Brex

**URL Source:** https://www.brex.com/support/value-added-tax

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## Overview

For better transaction organization purposes, account admins, card admins, and bookkeepers can enable the separate tracking of Value-Added Tax (VAT) on transactions and have that information exported to your ERP or via Custom Accounting. Please reach out to Brex Support to get started.

**Note:** VAT tracking is supported for NetSuite, Oracle Fusion, or Custom Accounting integrations.

## How VAT tracking works

Once you’ve enabled and configured VAT tracking in Brex, users can capture the tax portion of an expense separate from the total tax inclusive amount, where applicable. The tax amount for transactions can then be recorded separately in your ERP. Proper tracking of VAT can help with tax compliance and streamline your accounting and reclamation processes.

## Add VAT information to a card expense

**Step 1:** Click on the expense you want to edit.  
  
**Step 2:** Go to _Details_.

![HC- VAT01](https://brand.brex.com/m/33b9689815cfc2d1/webimage-HC-VAT01.jpg)

**Step 3: **Upload a valid tax reclamation document (typically an invoice) the same way you typically upload a receipt.  
  
**Step 4:** Select a tax rate from the _Tax rate_ dropdown. You can choose _Custom_ if you need to manually enter the tax amount—which can be useful if your transaction has multiple items with different tax rates applied.  
  
**Note**: The options available in the tax rate drop down are configured by your Brex admin.

![HC- VAT02](https://brand.brex.com/m/5239016b9c3d6c08/webimage-HC-VAT02.jpg)

## Submit a reimbursement with VAT information

**Step 1: **Go to _Expenses_ and click _Request reimbursement_.

![HC- VAT03](https://brand.brex.com/m/3b594c011dbf6e33/webimage-HC-VAT03.jpg)

**Step 2: **Upload a valid tax reclamation document (typically an invoice) the same way you typically upload a receipt.  
  
**Step 3: **Submit the required information for the reimbursement and update the _Tax code_ field.

![HC- VAT04](https://brand.brex.com/m/5fcd3c12759b5aa1/webimage-HC-VAT04.jpg)

**Step 4: **Complete your reimbursement and click _Submit_.

### Tracking taxes in Canada

Due to the nature of Canadian taxes, the set up for tracking taxes in Canada is slightly different. Instead of importing tax codes from Netsuite for your Canadian entity, we’ll prepopulate the relevant taxes (GST, PST, HST, QST) as available options in Brex. You can also assign a separate GL account for each tax. Similar to tax codes we import, you can toggle each of these on/off as needed.

![HC- VAT15](https://brand.brex.com/m/339a6da465845cab/webimage-HC-VAT15.jpg)

For Canadian expenses that require VAT, users can input the relevant tax amounts for each type of tax applicable to their expense.

![HC- VAT16](https://brand.brex.com/m/25c347739a2b5bae/webimage-HC-VAT16.jpg)

### For custom accounting users

**Step 1**: In your dashboard, go to _Accounting_ > _Integrations settings_ > _Entity settings_.  
  
**Step 2**: Click on the entity you want to set up VAT tracking on and click _Tax codes_.  
  
**Step 3**: In the _Tax codes _section, click _Create your first tax code_.  
  
**Step 4**: Here you can create, delete, enable, and disable tax codes. For each transaction, employees can only select from enabled tax codes.

## Require VAT information for expenses

Required VAT documentation typically consists of an invoice and a tax rate. Once you've set up VAT tracking, your employees will have a new tax rate field on expenses incurred by an entity for which you've set up and enabled tax codes. Entities where tax codes haven't been set up or enabled won't be impacted. Admins can improve compliance by requiring VAT documentation for employees at the policy level under _Additional documentation controls > Require VAT documentation._

![HC- VAT17](https://brand.brex.com/m/6ba8b57472c50624/webimage-HC-VAT17.jpg)

## Troubleshooting

Follow the instructions below to resolve some of the most common issues. If the errors persist after following the steps, contact Brex for assistance.

### NetSuite VAT permissions issues

If VAT data (such as tax codes, tax rates, or VAT-related fields) isn’t syncing correctly between NetSuite and Brex, your NetSuite custom role permissions may not be fully configured.

Brex requires specific permissions in NetSuite to access VAT-related records. If these permissions are missing, you may see incomplete tax data, failed syncs, or missing fields in your dashboard.

For full instructions on configuring custom roles for VAT, please see the NetSuite Help Center overview article [here](https://www.brex.com/netsuite-overview).

### Users not seeing the tax rate field on their expenses

**Step 1**: Refresh your ERP connection (e.g., NetSuite) via _ERP settings_ in Brex.  
  
**Step 2**: Go to _Accounting_ > ERP Settings > _Entity settings._ Set up and enable tax codes for the relevant entity by following the steps in the _Set up VAT tracking_ section.

### Users don’t see a specific tax code for a given entity

**Step 1**: Refresh your ERP connection (e.g., NetSuite) via the ERP settings page in Brex.  
  
**Step 2: **Go to _Accounting_ > _ERP settings_ > _Entity settings_ and select the entity for which a given tax code is not showing up.  
  
**Step 3:** Under _Tax codes_, enable the relevant tax codes you want visible.

### Employees receive “Missing tax code” notifications for non-VAT-enabled policies

**Step 1**: Confirm that VAT documentation is not required for policies tied to U.S.-based employees.