An additional $10bn is likely being claimed incorrectly – leaving companies open to enormous fines
New research published today suggests that companies may be failing to claim $30bn each year in VAT recovery from travel expenditure, a huge sum in a $64bn annual market, which is growing at nearly 6% a year. The study by Taxback International, the leader in global VAT recovery and compliance, suggests that many corporate businesses are leaving this VAT unclaimed year after year because of their lack of knowledge, resources and the technology required to reclaim it successfully from worldwide tax authorities. VAT reclaim on business travel and expense (T&E) is particularly slow, complex and cumbersome when done manually, making automated technology critical to successfully reclaiming VAT.
Taxback International also announced a substantial enhancement of its VATConnect platform with advanced analytics functionality and enhanced security features, making VATConnect the most secure VAT solution on the market.
“Our research shows that globally companies are likely to be missing out on $30bn of potential refunds every year, with up to $10bn being incorrectly claimed, leaving companies open to severe penalties,” said Barry Noonan, CTO for Taxback International. “In addition to maximizing refunds for our clients, we help them maintain compliance and do so in a secure manner. As the only major VAT technology provider based entirely in the EU, adhering to the most stringent GDPR standards is a given, but we take it much further by being regulated to international banking standards, incorporating best practices such as two-factor authentication and working with industry experts to ensure our security is of the highest standard.”
VATConnect is an automated cloud-based platform that makes VAT recovery and compliance effortless while providing real-time visibility for over 12,000 clients globally. New analytics allow clients to instantly and securely view the status of all VAT claims, registrations, returns and payments from tax offices around the globe. Clients now have the information necessary to easily resolve issues, mitigate risks and drive efficiencies across their business. In addition, prescriptive analytics provide insight into expected future reclaims, and fore sights into any gaps to help them get the highest possible reclaim and improve compliancy rates year after year.
Daniel Cole, Global Director Travel and Facility at Electrolux said: “As a global organisation, we gain massive efficiencies when we have access to insights such as overall spend trends, giving us full oversight into what’s happening around the world. We can track, manage and report at a global level as well as drill down into country, region and even individual level detail at a glance. Having instant access to information and the ability to customise reports based on over 200 data points has helped us improve our cash flow by planning ahead for potential refunds and any payments required.”
In addition to advanced analytics, Taxback International is the first VAT technology provider to introduce multi-factor authentication into its platform. According to Verizon’s recent Data Breach Investigation Report, 81% of hacking-related breaches use either stolen, default, or weak passwords. 99% of all security breaches are prevented by using multi-factor authentication, which requires the user to include additional credentials such as a code from their smartphone or a fingerprint, in addition to the username and password. Over 12,000 clients trust Taxback International to maximise their VAT reclaim while adhering to the strictest of security standards.
About Taxback International
Taxback International combines innovative technology, deep industry expertise and value-added partnerships to deliver comprehensive VAT solutions that maximise VAT reclaim and minimise risks, so companies can focus on growing their business. Thousands of organisations across the globe trust Taxback International to manage their VAT processes thanks to advanced security, forward-thinking innovation, over 20 years of VAT expertise and an industry leading technology platform. Taxback International is a global accredited Fintech company within the Taxback Group of brands that provide finance, tax and travel services. The Taxback Group’s global footprint encompasses 30 offices worldwide and business across 126 countries.