This is a guest post by WAY2VAT.
VAT recovery is one of the more misunderstood concepts among small and medium-sized businesses. Business owners know they could potentially get some of their local and foreign VAT back, but they lack the resources needed to do so. There is no minimum on VAT recovery, and even small expenses, like VAT for a cup of coffee, add up. Typically, companies can recover about 4% of their overall travel expenses this way.
The truth is that VAT recovery can be complicated, and the rules change from one country to the next. Factor in foreign languages and the fear of making a mistake with a country’s tax authority, and it’s easy to understand why a small business would rather write VAT off as an expense rather than allocate resources to recover their funds.
Simplifying VAT recovery
WAY2VAT for Zoho Expense simplifies VAT recovery by automating almost the entire process, helping you reclaim VAT while protecting you from trying to reclaim on ineligible purchases.
After you scan your tax receipt, the system automatically reconciles your invoice with your expenses and sorts local and foreign expenses.
- For local VAT, the platform reads through the tax invoices that are in your system. When the wrong documentation is in place, it either gets the correct paperwork from the vendor or if that isn’t possible, alerts you to get it from the vendor. Then, it prepares your monthly VAT report, making it easy to submit to your local tax authority.
- The foreign VAT process is similar. Instead of having you submit the forms, though, WAY2VAT submits your tax forms directly to the foreign tax authority.
Funds are then transferred from the tax authority directly to your account.
WAY2VAT’s system is compliant with the VAT tax codes in over 40 countries. It protects you from making mistakes in your filing and ensures that you aren’t exposed to potential fines. The system is easy to use and is empowering Zoho Expense business owners to get their VAT back.
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