Navigating international VAT reclamation can be a time consuming and daunting task for companies large and small. Joe Healy of Taxback International, alongside SAP Concur and Medtronic, suggest that, in a world where business is progressively digital and truly global, it is crucial for companies to understand digital tax processes when navigating international VAT reclamation.
Historically, reclaiming VAT and tax required teams of finance professionals to manually calculate the applicable rates for expenditure, searching through reports line by line for eligible items, logging the paper trail and storing it in physical archives. Due to time restraints, this often meant that money was being lost.
In the name of transparency, and within ever-shortening time frames, businesses, both domestic or international, are now expected to submit far more information than before. Every invoice, transaction and interaction requires meticulous logging, submitting and filing for e-archiving regulation, on top of any reporting on a transaction-by-transaction basis.
There can be significant missed opportunities for multinational businesses if finance teams are not entirely up to speed with the details of tax laws or don’t have the hours to unravel complex VAT regulations. Even companies based in one country will likely need to outsource some resources to cover international markets or supply chains. A constant flow of data from a network of aligned businesses is vital for a company to operate at its peak and creates an opportunity to turn digital tax regulation from a burden to a benefit.
How are finance teams expected to cope with these new volumes of information? Moving out of home territory and into unknown government trading law is an underlying issue firms often overlook.
Today, navigating international VAT reclamation can be handled efficiently and conveniently by a symbiotic partner network, by being in constant communication with global tax offices, interpreting the legislation and ensuring accuracy.
To learn more about how Taxback International can help maximise international VAT reclamation, please visit: https://taxbackinternational.com/vatconnect/