It's common knowledge that VAT recovery can significantly impact a company's bottom line. However, many businesses continue to underestimate the opportunities that VAT recovery can have for their businesses. Why? Because the process often feels so complex, time-consuming and resource intensive, the benefits rarely outweigh the hassle of recovering it.
However, with new technological advances and automated VAT recovery solutions, there's very little standing in the way of recovering VAT on domestic and foreign expenditures. Here's how your business can benefit from VAT recovery without the hassle.
The benefits of automated VAT recovery
As a business grows, so does its travel and employee spending. Fortunately, your business can recover the VAT on those expenses from the tax authorities, but it’s not always as straightforward as asking for your money back.
Within the two overarching recovery types, domestic and foreign, there are over 32 VAT recovery opportunities that allow companies to maximise their VAT return yield, which can amount to up to 27% of your overall expenses. However without the right recovery tool, these opportunities frequently stay undiscovered and unrecovered.
Apart from the obvious benefit of more significant savings, here are the additional advantages of automated recovery that businesses can't afford to leave on the table.
1. Gain greater visibility
The golden rule of VAT recovery is; if you can't see it, you can't reclaim it. Automated VAT recovery solutions give companies greater visibility and transparency into their expense management solution (EMS). Through integration with your EMS, your VAT recovery solution can view and track spending data to maximise recovery opportunities. In addition, it also provides accurate and real-time reporting on the status of your claims, helping you make more strategic financial decisions moving forward.
2. Boost your competitive advantage
In many industries, lower prices can drastically improve your success. By reclaiming your VAT through automation, your business can reduce the overall costs of goods or services in your industry and benefit from a less resource-intensive and time-consuming process. As you'll ultimately recover a higher percentage of business costs incurred, you can afford to put more into your product or service while keeping prices affordable and competitive.
3. Remove the risk of non-compliance
Not only are manual recovery processes time-consuming, but they are rife with human error. Fortunately, this doesn't reflect your company's VAT processing abilities. Keeping up with the different VAT recovery filing, registration, and compliance requirements is complex, even at the best times. Automated VAT recovery solutions ensure the entire process aligns with the country-specific treatment and deadlines. This allows you to benefit from a quicker recovery while staying compliant and risk-free during the entire process.
4. Utilise growth opportunities
Networking and attending conferences and tradeshows are critical in boosting your business growth. However, many small businesses are hesitant to attend or utilise these opportunities, as the costs incurred are significant, and VAT recovery is often complex. Automated VAT recovery solutions guarantee more consistent and reliable VAT returns of conference and event expenditure. When your employees embark on an incentive company trip or showcase the latest innovations at an expo, you can invest with the confidence that you can reclaim up to 25% of the costs.
Unrivalled automated VAT recovery with VAT IT
Start reaping the benefits of a new era of reclaim with VAT IT. Using the latest cutting-edge technology, we make the complex world of VAT reclaim simple, smooth and stress-free.
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