Where is the hidden VAT?
The first step to VAT recovery is to actually understand on which transactions you can recover VAT. For Accounts Payable those invoices that carry Foreign VAT have to be identified, either through the PO solution or within the regular AP process. Not all finances processes are designed to reflect these relevant transactions. Another important category is T&E travel and entertainment expenses. Every T&E expense either domestic or foreign can include VAT or GST that today is not recovered. Especially in the T&E process, there are many small invoices from different countries that need to be audited, all according to the rules of each single jurisdiction. VAT is also easily lost on P-Card transactions. Most purchasing card processes are not set up for VAT. Instead of an individual invoice being booked, rather credit card statements are booked. Our research shows, that when these processes are run in a manual way, they involve significant resources, but also compliance risks. Not to mention the VAT lost on smaller transactions! For which a manual process is far too expensive. For these reasons many companies unfortunately choose to avoid this process, and not recover the VAT. VATBOX, however, provides for a solution VATBOX automatically integrates with your ERP or T&E system. The relevant data is automatically transferred for a full audit in a highly secured hassle-free process. In addition, our business intelligence solution helps to get you the management reporting system you need to get the insights into your internal processes. Would you like to know more about our process and our solutions? Go to VATBOX.com
