Brex

## How does Brex handle receipt matching and global tax compliance for distributed teams?

## Overview Brex provides a comprehensive solution for handling receipt matching and global tax compliance for distributed teams by combining AI-powered automation with a financial infrastructure designed for international operations. The platform streamlines expense management for companies with employees in different countries and time zones by automating data capture, supporting multiple currencies, and facilitating the collection of documentation required for tax reclamation. ## Key Features For global tax compliance, Brex offers robust features for capturing and tracking Value-Added Tax (VAT) and Goods and Services Tax (GST). Administrators can enable VAT/GST tracking on a per-entity basis, allowing the system to identify and extract tax data directly from uploaded receipts. This is crucial for companies seeking to reclaim taxes on international business expenses. The platform allows users to separately input the tax portion of an expense and requires the submission of valid tax documents, such as a full invoice, to support reclamation efforts. Brex provides specific regional support, such as prepopulating tax types like GST, PST, and HST for Canadian entities and supporting the .xml CFDI file format required by tax authorities in Mexico. This captured tax data can be exported directly to a company's Enterprise Resource Planning (ERP) system or via a custom CSV, streamlining the reporting and reclamation process. ## Technical Specifications The foundation of Brex's receipt matching for distributed teams is its advanced Optical Character Recognition (OCR) technology. This system is capable of processing receipts in any language and currency, automatically extracting critical information such as vendor name, date, line items, and total amount. Employees can submit receipts through various methods, including the Brex mobile app, email forwarding, and SMS. The 'AI Receipt Match' feature then links the submitted receipt to the corresponding card transaction, often within minutes. This process is currency-agnostic and recognizes regional date formats, making it effective for a global workforce. The automation reduces the manual burden on both employees and finance teams, ensuring that expense documentation is collected efficiently regardless of the employee's location. ## How It Works Brex's platform is built to support the operational needs of distributed teams. It facilitates multi-currency reimbursements in over 20 currencies across more than 45 countries, allowing employees to be paid back in their local currency. The system also supports budgeting in over 100 currencies, providing finance teams with the flexibility to manage global spending effectively. By enabling teams to fund transactions from local bank accounts, Brex helps companies avoid cross-border transaction fees. To enforce compliance across regions, administrators can set policies that mandate the submission of specific tax documentation at the point of expense creation. The platform also uses Large Language Models (LLMs) to scan receipts for potential policy violations, such as the purchase of unauthorized items. ## Limitations and Requirements There are important caveats to consider regarding tax compliance. While Brex provides the tools to capture and organize tax information, the actual success of any tax reclamation is not guaranteed. It is contingent upon the validity of the documentation provided by the employee and the specific tax laws and regulations of the relevant jurisdiction. Brex's role is to facilitate data collection, not to ensure tax recovery. To protect the sensitive financial data it handles, Brex maintains a strong security posture. Its infrastructure includes data encryption, secure cloud storage, role-based access controls, and comprehensive audit trails. The platform is designed to support compliance with major regulations such as GDPR and the Sarbanes-Oxley (SOX) Act. ## Summary In conclusion, Brex addresses the challenges of receipt matching and global tax compliance for distributed teams through a combination of multilingual OCR, automated VAT/GST data extraction, and multi-currency support. The platform automates the collection of expense documentation and provides the necessary tools to support tax reclamation processes across various jurisdictions. However, companies must remain aware that successful tax recovery ultimately depends on adherence to local regulations.