It's no secret that the VAT landscape is rife with challenges, especially considering the monumental tasks of complying with country-specific VAT rules, deadlines, and requirements. However, the secret to side-stepping the common pitfalls of the VAT reclamation process may be much simpler than you think. Here’s how better internal collaboration leads to better VAT reclaim opportunities, maximized savings and an all-around smoother process.
When maximizing your VAT reclaim scope, one cardinal rule applies to all VAT reclaim mechanisms: To reclaim it - you have to see it first. Many expenses are eligible for VAT recovery and can significantly impact your VAT yield and savings. However, from a financial perspective, they don't exist. The result? Millions of unclaimed VAT slipping through the cracks each year. So to ensure that your business doesn't leave significant savings on the table, it's critical to first look at how internal collaboration and communication can aid the process, improve spend visibility, inject unparalleled savings into your business, and maximize your VAT reclaim.
Why does your internal collaboration matter?
One of the most significant pitfalls regarding VAT reclaim is assuming that the entire recovery process is delegated to the finance department. Although they are frequently the most involved in the process, the impact of VAT affects every inch of an organization, from HR, marketing, sales, training, and much more. So how can better collaboration between departments and the finance department improve VAT reclaim opportunities? Here's the link.
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Amplify your VAT reclaim opportunities
Different departments have more significant insights into business spend and these niche expenses per department are often VAT recoverable. However, eligible expenses seldom make their way to the finance department for VAT reclaim. For example, the logistics department can provide insights on the import VAT implications, the supply chain on potential international expenses, the marketing team can share tradeshow and event expenses, and administrative teams may have data on expenses towards office supplies or utility bills. Collaboration and transparency between departments concerning eligible expenses and VAT recovery allow organizations to maximize savings and tap into significant additional revenue. The first step? Educating and informing employees about their specific role and its impact on VAT reclaim.
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Improve VAT compliance and accuracy
Invoicing instructions and accurate record keeping are two of the most significant cornerstones of successful VAT recovery. Although finance teams often assess hundreds of invoices for eligibility and compliance, the first step is to collaborate with the necessary stakeholders about the required protocol to obtain and gather invoices and additional supporting documentation for VAT reclaim. In addition, the process of recovering VAT is also subject to complex and ever-changing rules and legislation. Therefore, to ensure all efforts aren't in vain, internal collaboration ensures that the entire process aligns from a legal, compliance, and financial perspective.
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More strategic financial planning and business decisions
By driving more transparency and collaboration throughout the reclaim process, organizations can improve their spend visibility and more accurately gauge the financial posture of their organizations. When projects exist from a financial point of view, and all invoices are reported into the accounting system, leaders can better gauge which supplies are being utilized and the significance of individual projects in relation to their VAT reclaim potential.
Effortless transparency and control with VAT IT
There's no need to settle for inter-departmental bottlenecks regarding VAT reclaim, especially if a tiny error can result in losing up to 25% of your VAT savings. Rather, supercharge your savings and elevate your finances with one centralized VAT reclaim solution. Align your VAT reclaims with industry best practices, your finance departments, your employees, and country-specific VAT treatment on auto-pilot while tapping into experts in the field. We've got you (re)covered!
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