MasterCard and VAT IT cloud-based solution tackles VAT/ GST hassle
By Digital News Asia February 9, 2016
- Automated VAT recovery process on MasterCard credit card expenses
- VAT Cloud enables seamless integration with issuing bank data
PAYMENT company MasterCard has announced a partnership with VAT IT, which specialises in cross-border Value-Added Tax (VAT) and tax recovery services, to provide businesses with what they claimed is the first cloud-based, automated VAT tax recovery service in Asia Pacific.
Until now, the VAT recovery process for businesses has been highly administrative and bureaucratic, making it cumbersome and difficult to efficiently and effectively recover VAT claims, resulting in financial losses from unclaimed foreign VAT, MasterCard said in a statement.
VAT includes consumption-based taxes such as the Goods and Services Tax (GST) that rolled out in Malaysia last April.
VAT Cloud, powered by VAT IT, is an automated service that enables seamless integration with issuing bank data to allow analysis and recovery of VAT embedded in credit card data, MasterCard said.
The new VAT Cloud automatically connects an issuing bank’s corporate MasterCard credit card data directly to the tax office, while simultaneously identifying potential VAT reclaims through transaction data.
It is then consolidated and packaged into the respective compliant VAT reclaim formats and sent directly to the relevant tax office, MasterCard said.
The VAT claims are then transferred back to the business’ bank accounts and the entire process is traceable from data collection to the payment of the VAT claim.
VAT IT only charges a fee for successful VAT claims, with the fee being calculated as a percentage of the claim, while no fee is charged should there be any unsuccessful claims, according to MasterCard.
“For any business today, foreign transactions, employee travel expenses and their accompanying foreign tax create a significant cost burden to businesses,” said Philip Glickman, Asia Pacific head of Commercial Products and Solutions at MasterCard.
“Whether you’re a startup, a small and medium enterprise (SME), or a large corporate organisation, timely and efficient VAT recovery can help save your business considerable time and money.
“The seamless automated process also provides a paperless and fully digital trail, such that you can trace every step of the process down to granular detail,” he added.
Meanwhile, VAT IT chief executive officer Saul Goldstein said, “Beyond the cost savings, VAT Cloud provides businesses with peace of mind as the entire process is safe and secure, and they can conveniently check and trace the progress of the claims.
Beginning January 2016, businesses all across the Asia Pacific region will be able to register for the service either through their issuing bank, MasterCard or VAT IT directly. They will be able to use VAT Cloud system to process any of their VAT claims in a total of 24 countries.
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