It may be surprising to learn that there are still companies which manually manage VAT processes. This is not only surprising to hear because there are so many “automated” VAT solutions available, but also because the rules and regulations of VAT recovery are constantly changing. A true automated VAT recovery service can benefit your company in a lot of positive ways. In this article, we cover just 7 of the many benefits companies receive by using an automated VAT solution.

Top 7 Benefits of Automating VAT Recovery

1. Airtight compliance. An automated VAT solution implement VAT rate changes and will retro-active validation invoices for VAT recovery. Your employees don’t have to worry about staying up-to-date nor spend valuable time rechecking VAT rates on invoices that were already processed. Using an automated service will validate your invoice, checking that all required information needed for VAT recovery is mentioned on the invoice and ensures full compliance with all international rules and regulations of the various jurisdictions
2. 360° data visibility on VAT spend. With an automated VAT recovery service, you have a 360-degree view of VAT spend on all your entities worldwide. Sophisticated tools greatly enhance the transparency of a company’s tax policies, leading to stricter internal and external compliance, and reduced exposure and risk
3. Gain valuable insights. An automated VAT recovery solution gives full insight with analytics, segmentation, instant record retrieval, useful reports, detailed audit trails, higher funds received resulting in more money in the bank. Effective analytics can help an enterprise’s indirect tax function transform Big Data into actionable intelligence that helps businesses improve operational efficiencies, minimize risk, and strategize for the future.
4. No invoice will go uncovered. Many small invoices go unrecovered. In fact, 69% of invoices are under ten euro and can be as much as 30% of your total VAT recovery. Don’t leave this substantial amount money on the table. An automated service ensures that all invoices are taken care of.
5. Comply with new digital regulations. Digital Europe is progressing fast with many EU member countries already implementing digital systems for tax reporting. Soon, all countries will be required to digitize their systems. The increased use of automated electronic systems by tax authorities and enterprises has made it easier to collect, transfer, store and analyze large amounts of data without significantly increasing the time spent by companies on compliance. According to Ernst & Young, in-depth reviews that once took from three months to two years to complete can now be done on a data-driven basis in a matter of weeks. In light of this, authorities expect enterprises to take full responsibility for adopting digitalization, and maintaining full control and compliance of all tax-related business activities.
6. Save money. It takes a qualified and experienced VAT professional to ensure that your company receives all the recoverable VAT they are due. Employees who are not experienced in VAT waste 50% of their time updating Excel files. When employees who are not experienced in VAT recovery manage a company’s VAT, there are sure to be mistakes. This can result in VAT that was simply not recovered. You may also find that you are not compliant with all VAT rules. Automated VAT solutions ensure that your company saves money by recovering all the VAT due.
7. Save time. Employees can end up spending half their day checking and updating invoices manually and checking spreadsheets with barely having time to stay up-to-date on VAT rules and regulations. A significant amount of time can be saved by using an automated service. With an automated solution it is simple to collect, transfer, store and analyze large amounts of data while significantly increasing the time spent on compliance.

VATBox has successfully streamlined the global VAT recovery process, providing businesses with unrivaled visibility, compliance, and data integrity, and ultimately boosting its bottom line. To maximize eligible VAT refunds, many companies choose to implement VATBox, an automated, enterprise-wide, cloud-based VAT recovery solution that streamlines the global VAT recovery process. Let us show you how your company can thrive in today’s complex financial times.

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