Complex processes prevent companies from reclaiming VAT

Around 54% of European companies are held back from reclaiming VAT because of complex processes, SAP Concur points out in the report “The Hidden Potential of VAT Reclaim”

When finance managers were asked why in many cases VAT is not reclaimed by Companies they replied: 

• More than a quarter (27%) say this is because employees submit expense reports with missing or incorrect information. 
• 23% do not reclaim VAT because expense reports often include items with different VAT rates. 
• Most respondents (61%) do have digital tools to reclaim VAT, but 51% say that those tools are not being used optimally. 
• 36% of Dutch companies are sad about future developments, for example, due to more frequent audits and fines for not complying with the applicable tax rules.

VAT refunds during the corona pandemic.

The corona crisis has resulted in companies adopting more effective tax planning and strategy (34%) and trying to generate additional revenue from new customers and prospects (26%), mainly to maintain cash flow.

SAP Concur adds that reclaiming VAT is also a good way to achieve this. ‘But then it must be ensured that everything is done according to the rules. For that reason, many organizations are now implementing tools based on AI. These tools help to improve processes and ensure that the rules are complied with.

Source credit: accountancyvanmorgen.nl