Could VAT be your key to faster cash flow in the year of COVID?
3rd August 2020: Minimize some of the commercial damage done by COVID19 and read about how VAT could become an unexpected cash-flow generator.
Foreign and domestic VAT recovery can genuinely provide a revenue opportunity for your business during these difficult times. In the midst of all this upheaval, COVID offers us the opportunity to rethink the way we do business and question if there are different ways or different approaches that can deliver results.
Normal business life has been significantly disrupted and with it, so too has cash flow. Is there an untapped cash flow resource that could prove key to your organisation?
We believe there is – and we can help you seize it.
From accounts-payable to travel expenses, with the right expertise and platform, you can maximise your global reclaim figure and begin to see VAT reclaim as an opportunity – and minimize some of the damage done by COVID 19.
If you’re acquiring goods or services cross-border, you will incur foreign VAT and there is a significant opportunity for VAT reclaim that may be going unnoticed. By identifying foreign VAT charges on the accounts-payable side, significant amounts of revenue can be generated.
Foreign VAT that has been paid on certain types of business transactions is often something that gets missed by finance departments. An intelligent automated VAT reclaim platform like Taxback International will capture all of that VAT and ensure it is successfully recovered for you. For so many clients, we’re already doing this on all sorts of accounts-payable expense types, such as the installation of ventilation systems, event and conference costs, medical products, and many types of goods and services.
A great deal of foreign VAT is charged from these types of transactions. In fact, in some cases, reclaim figures can hit six figures. Just last year, we reclaimed over €150,000 on two invoices for one of our international clients. That is revenue that would simply have been lost if we were not on the case – and you must also be sure you are not letting these opportunities drift away.
Elsewhere, travel expenses offer significant opportunity for foreign VAT reclaim. To get the most from this, it’s crucial that you work with a proven service provider who understands where the opportunity lies.
For example, the United Kingdom has the most generous rules around VAT reclaim but other countries like Germany, Netherlands, Sweden, Denmark, Austria, and Spain offer significant opportunities as well.
In all, 43 countries worldwide operate some form of Foreign VAT reclaim function and in terms of expense types, accommodation makes up one of the biggest portions, followed by meals, business meals, food, vehicles, and so on – while over 170 countries retain a Domestic VAT Reclaim function – with the opportunity to reclaim back as far as 5 years. Just like in the case of accounts payable invoices above, travel expenses cannot go unchecked.
With a complete understanding of the travel-expenses landscape, we work closely with thousands of companies, helping them release cash-flow through expert VAT reclaim. And we can make sure this is an opportunity you can truly maximise.
When you work with a global VAT specialist like Taxback international, for both foreign and domestic VAT recovery, everything is indemnified against risk. On your behalf, we know all of the rules, all of the regulations, and will audit every transaction.
Compliance is assured and will deliver an immediate revenue opportunity for your business in these difficult times. In this era of COVID, where cash flow can be severely interrupted, it is crucial your company is releasing funds back to your business wherever the opportunities lay.
VAT reclaim is an opportunity – let Taxback International help you seize it.
See more Taxback International Articles
An Introduction to Value Added Tax and what it means for your business
Everything you need to know about Value Added Tax and how to maximise your reclaim.
Be ready for the September VAT deadline
8th July 2020: Reclaim VAT on cross-border expenses incurred in EU member states, as well as non-EU VAT from certain countries
Automated solutions that deliver real savings, right now.
10 June 2020: Free on-demand webinar: Unlocking additional revenue streams in uncertain times.