A strategic alliance has been formed between Price Waterhouse and Meridian VAT Reclaim to develop the range of services the companies offer. Mr Barry Stiefel, the chief executive of Meridian, said that the agreement would allow customers obtain enhanced services in VAT recovery and representation, and customs management. "EU businesses are able to recover the VAT paid in other EU member states on expenditure such as hotels, car hire and exhibitions, if they can prove to the tax authorities that they are registered for VAT in their own countries.

"Non-EU businesses can also recover VAT in the EU but they must be able to provide evidence of undertaking an economic activity in their own country," a statement from the two companies said.