Value-Added Tax is one of the largest and most costly taxes worldwide. Most companies recover domestic VAT. Fewer companies realise the potential in foreign VAT recovery. Companies can reduce their travel costs up to 20% by reclaiming overseas VAT. When questioned upon, businesses claim that foreign VAT reclaim is a process that’s too time-consuming to manage.
So, foreign VAT reclaims, it’s too time-consuming. Let’s drop it? No, and here’s why. It is possible to fully automate national and foreign vat reclaim. This condemns the previously time-consuming process. Besides this claim there are more benefits to automated VAT recovery:
- Automation reduces the risk of human error.
- Automated VAT gives you access to real-time data.
- VAT automation makes sure that all VAT, also foreign, is recovered.
- It automatically complies with all rules and regulations.
A reason not to start with VAT automation is the lack of employee involvement. Frequently, businesses have to deal with a percentage of lagging employees that take more time to adapt themselves to changes. Submitting VAT using VAT software will ask employees to learn how to use the program. This might be seen as an obstacle. However, when the software is integrated with an intuitive expense management solution this long learning curve can be avoided.
Interpreting the reasons above it seems easy to recover national and foreign VAT. To ensure that all VAT is reclaimed you must make sure that your expense data is organised. A clever way to do so is by using online expense management software. This process determines that all data will be correct and will be qualified for export to the ERP and VAT automation program. Not all online expense management software exports expenses to automated VAT reclaim software. However, ours does. We collaborate with VAT4U and incorporated their solution that makes (national and foreign) VAT reclaim effortless.
Save, gain, comply
To summarize: by using clever software it’s possible, and even accessible, for everyone to organize expense data and reclaim VAT without putting up with a complex and time-consuming protocol. By doing so it’s possible to:
- save up to 20% on travel expenses;
- save immense amounts of time (and thus money);
- gain more insight and control over expenses;
- ensure compliance with all rules and regulations.
What are you waiting for? Make sure to get in contact!