VAT Technology Solutions: The Must-have Requirements for Global Enterprises
The Blue dot Team
The Blue dot Team
As VAT technology advances to support today’s tax-related activities and challenges, a dedicated VAT management solution is the most effective and efficient way to gain control of your VAT reporting process.
But what are the key challenges an automated VAT solution needs to solve to make that possible at scale?
Our newly-published VAT Technology Guide examines the underlying challenges enterprises face, the must-have requirements they need from a dedicated VAT solution, and the benefits of future-proofing their processes to meet emerging digitalised reporting requirements.
First and foremost, a VAT solution must focus on solving the core data integrity problems caused by multiple unstructured spend sources inherent in many decentralised processes (e.g. multiple back office systems and applications, keeping and storing numerous spreadsheets in different branch offices and systems).
When combined, advanced AI models and specialised tax expertise can solve these problems, improve data quality, and automate time-consuming and inefficient manual checks. Enterprise-grade VAT solutions must comply with emerging digitalised reporting requirements and meet global government demands to replace manual entry of VAT returns, such as the UK’s Making Tax Digital (MTD) VAT regulations, and in Europe, the EU Commission’s VAT in The Digital Age (ViDA) action plan.
For cross-border enterprises, a VAT solution needs to include:
Implementing an advanced, technology-driven enterprise VAT management solution gives businesses the control they need to ensure readiness for the new compliance and reporting standards demanded by tax authorities, eliminate the burden and costs associated with manual legacy processes, and consistently optimise VAT reclaims.
But to achieve this, enterprises need a fully centralised process to extract, validate and qualify business expenses for VAT refund – and that requires a solution that gives full visibility and control to employees across departments.
Just as important, enterprises need to ensure the utmost accuracy when validating their transactional data for reclaimable VAT. Performing this effectively at scale requires advanced AI and machine learning capabilities that can synthesise large data sets and contextualise transactions with new levels of precision.
By implementing an advanced AI-driven VAT solution, enterprises gain:
While reaping these benefits requires nothing less than an AI-led approach that can ensure data quality over your employee-driven transactions, most offerings in the market today use AI and machine learning models to a limited degree over some aspects of expense analysis and transaction processing.
Blue dot has long recognised the need for a technology-first approach to VAT management and is leading the way with the first AI-led, centralised, and audit-ready platform built for global enterprises. VATBox by Blue dot combines advanced AI and Large Language Models, Generative AI capabilities, and a built-in tax compliance engine that is dynamically updated with the latest VAT and taxation rules per country. This enables a complete, contextual transactional story of each employee-generated expense, enabling enterprises to calculate VAT refund eligibility automatically and precisely while ensuring compliance across all entities and locations.
Download the full enterprise VAT Technology Guide to learn the essentials of an effective centralised and digitalised solution and how these capabilities can power unprecedented efficiencies and savings while minimising compliance and audit risks.