Levied by more than 160 countries, Value Added Tax (VAT) is one of the most common forms of taxation in the world. VAT is applied at every step of the manufacturing and supply chain – and collected by businesses on behalf of the government.
But in most cases business buyers are also entitled to recover VAT charged by suppliers to avoid accumulation. And this quickly adds up. It’s estimated that the global market potential for VAT reclamation alone is €61.7billion ($74.9billion).
In that case, why does 54% of eligible VAT go unclaimed by businesses? The answer is simple: complexity. Finance teams have to contend with complicated regulations that vary from one country to the next and are almost constantly changing. Processes are often intricate and time-consuming, leaving a high margin for error.
This report will explore the financial challenges businesses are currently facing, common roadblocks to VAT reclamation and the potential for digitalisation and specifically artificial intelligence to unlock vital cashflow. VAT reclaim could have a huge impact on the bottom line and help businesses through these challenging times.
