What happens to the VAT on an employee's receipt?

The bill to the employee keeps the VAT shown on the receipt, so you reclaim it as usual. The total is what they paid, which is what you owe them. Changing the account or VAT rate never changes that total. If your business isn't VAT registered (Settings → Business Profile), no VAT is reclaimed: the VAT stays inside the total, as on all your bills.

More in Employee expenses

• How do I set up an employee?
• What does "Do they have a company card?" change?
• What is the "Expenses only" role?
• How is an employee's expense sent to my accounting software?
• How do I record that I've paid someone back?