Partnership provides businesses in Asia Pacific with a seamless, automated VAT recovery process on MasterCard credit card expenses
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Singapore, 3 February 2016 – MasterCard has today announced a partnership with VAT IT, the global leader in cross border Value Added Tax (VAT) and tax recovery services to provide businesses with 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.
VAT Cloud™, powered by VAT IT, will enable businesses all across the region to see significant cost savings by using an automated, efficient and technology-based service that enable seamless integration with issuing bank data to allow analysis and recovery of VAT embedded in credit card data.
A fully automated cloud-based retrieval for VAT
The new VAT Cloud™ system 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.
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 and while no fee is charged should there be any unsuccessful claims.
“For any business today, foreign transactions, employee travel expenses and their accompanying foreign tax create a significant cost burden to businesses. Whether you’re a start-up, a Small Medium Enterprise (SME), or a large corporate organization, 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. This is another example of how MasterCard is dedicated to helping businesses make and trace business-related payments more efficient,” said Philip Glickman, Head of Commercial Products and Solutions, Asia/Pacific.
“We’re incredibly excited to embark on this partnership with MasterCard, this is a collaboration that will create enormous tax savings for thousands of businesses worldwide. 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,” said Saul Goldstein, CEO, VAT IT.
VAT Cloud™ available from January 2016 in Asia Pacific
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.
Businesses can also register for the service online here.
About VAT IT
VAT IT is a global leader in cross-border VAT and tax recovery. We maximise your tax recovery end to end through our industry-leading technology, ensuring full compliance. Our global operational resources enables us to serve over 8 000 clients in 100 countries worldwide. These range from small and medium-sized enterprises to large multinational corporations, across a wide range of sectors. By letting us do what we do best – tracking down and recovering the VAT you are owed – you can devote your time and resources to running and growing your business.
MasterCard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardAP and @MasterCardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.
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