For decades, the process of recovering value-added tax has been painstaking due to manual methods. Over the last few years, this situation has changed. We now have online VAT recovery platforms to make the entire scenario easier, simpler, and quicker. These services leverage numerous digital capabilities to make sure businesses spend less time worrying about their taxes and more time working on their product offerings. If you still need some convincing, here are some of the benefits of adopting an online VAT recovery platform like VAT4U.
Online VAT recovery platforms use Big Data
Big Data refers to the vast amounts of both structured and unstructured data sets companies and organisations handle, broken down by the three Vs: volume, velocity, and variety. Volume refers to the sheer size and number of incoming data while velocity is concerned with the rate at which this data comes in. Variety looks at the different kinds of information an organisation must handle.
Of course, Big Data on its own is meaningless since it always depends on how the data is used. When it comes to tax recovery, businesses are dealing with countless expense invoices that are collected but not put into any meaningful use. If more than 10 billion euros are lost every year through business travel, the data companies have about their expenses is not being incentivised.
This is where an online VAT recovery solution like VAT4U comes in as a problem solver. The platform can ingest all the data it’s fed, and then use that information to take meaningful action. In this case, the platform analyses business receipts to identify if the value-added tax is recoverable or not. Big data is used here to save time and money.
Automation and AI to speed up processes
To make sense of Big Data, online VAT recovery platforms use machine learning and artificial intelligence. AI has come a long way since its inception and is now capable of managing and operating complex operations that would take people hours, or even days, to complete.
All an organisation needs to do in most instances is set up the initial settings, and then mass input the expense invoices. The system handles the rest with little-to-no human involvement. Smart intelligence technology runs throughout scanning and reviewing material for mistakes and inaccuracies.
At the final stage, you’ll come across your tax refund potential quicker, and even get the chance to submit your returns to government portals automatically.
Compliance with regulations
The regulatory climate around taxation is always in flux, never staying the same. A prime example of this is the uncertainty surrounding a Brexit deal or a no-deal Brexit. The impact on both UK and EU firms remains up in the air, creating a uniquely chaotic situation when it comes to tax compliance.
This is especially true for small businesses lacking the resources or financial knowledge to be fully compliant with the rules. When it comes to value-added tax, different goods and services are treated with varying percentages, restrictions, and exemptions. Monitoring tax compliance through manual processes involving humans can lead to a higher number of errors.
An online VAT recovery platform that uses machine learning and automation, however, can keep track of over 2000 tax rules and ensure businesses keep up with the law at all times.
Accessibility through cloud technology
Businesses can oversee the tax responsibilities associated with the goods and services purchased, processed, and sold during their usual production run. The situation becomes less manageable when it comes to business travel, a function not tied directly to the production process. This is why so many organisations lose reclaimable taxes on the road.
An online VAT recovery platform combats this issue by using cloud technology, making its tools and services available anywhere, anytime. There will be installable software that you can use on a local computer or Mac, but this severely limits your access, especially during business travel. A cloud-based solution is accessible from anywhere, and all you need to use the system is an internet connection. In some cases, there’ll be a mobile component as well, letting you connect from your tablet or smartphone. VAT4U has a travel mobile app available to clients for free, giving you complete control right at your fingertips.
Reclaiming value-added tax can be a costly and time-consuming process for even the most well-run organisations, especially if a significant proportion of business is done overseas. If your company is looking for an online VAT recovery platform, try VAT4U. Our solution pulls together various digital functions to make sure your tax returns are managed efficiently. Try our system out, or get in touch if you have any questions.