4 Tangible Benefits to Using Good VAT Software

4 Tangible Benefits to Using Good VAT Software

Oct 22, 2018, 1:47:17 PM Business

Choosing the best VAT software for your needs offers a bevy of advantages over the competition.

VAT recovery can help add extra funds in your purchases account. Traditionally, though, the process of VAT recovery has missed the benefits of using VAT software. Manually calculating reclaimable VAT is not only time-consuming and demanding of dedicated effort, but it is also subject to avoidable human errors.

Using decent VAT solutions can help you claim applicable VAT refunds with confidence, in a timely manner as well as with little effort. That way, you can be more productive at something else while recouping more money from the tax office to your coffers.

Should you use the best VAT software in the market?

Here are some verifiable benefits of Making Tax Digital (MTD) before deciding on the next course of action.   

1. Streamlining Documentation and VAT Proof Management

The biggest challenge for many businesses and individuals wanting to recover VAT from purchases is they have little proof to show for their claims.

For example, the UK’s HM Revenues and Customs (HMRC) offers guidelines on the type of documentary evidence you need to successfully reclaim VAT on purchases. Some of those include VAT invoices, authenticated receipts for stage payments (construction industry), and HMRC approved self-billed invoices.

Top VAT software helps employees to capture the required documents, set them in a standard format, and save them for future reference by the tax authority. That way, users can avoid losing the evidence they need so much to reclaim VAT.      

2. Automating a Typically Cumbersome Process

By only manually entering the initial data into the software database, you set it up to automatically process subsequent processes. Such include automatically updating with new updates in VAT laws and rates, issuing HMRC-standard invoices for successful VAT recovery, and calculating the right amount of deductibles.

That means more savings for you and your team in terms of time, money and effort.  

You can also use advanced VAT software to set up returns’ deadline reminders, automatically share documentation with the HMRC, as well as create VAT analysis charts to make more informed, data-backed decisions on VAT.

When configured to factor in what you can or can’t reclaim VAT for, VAT programs make it easy to keep an accurate VAT recovery database. You can even calculate how much you can expect to reclaim when approved the HMRC.  

3. Cross-border VAT Recovery

Keeping track of reclaimable VAT in a foreign country or when leaving one is tough. According to a VATBox research finding, many businesses lose chunks of money in potent VAT refunds because they find following up on international VAT recovery laws, rates and procedures is almost always cumbersome.

Nowadays, with advanced VAT software, you can use a program to help you reclaim VAT in EU countries if you are either in the UK but established outside the EU or if established in another member-state. This is as described in the VAT Notice 723A last updated in late September 2018 by the HMRC.    

4. Mobile Accessibility

Depending on the VAT solution and vendor, you can make your recoverable VAT claims on the go from a smartphone, laptop or another internet connected device. You can also check on VAT recovery efforts’ progress from anywhere in the world. That automatically adds convenience and a layer of ease to the usually cumbersome procedure.

With the most ideal reclaimable VAT software solution, you can add more money in your coffers, ramp up more time for boosting your team’s productivity, as well as save money you would have used to pay third-parties for the recovery of VAT.

More savings for you mean you can choose to pas the benefits to your pricing model hence customers. That way, you can offer your products or services more competitively than your competition.    

Published by Zachary McGavin

Comments (2)

Jan 15, 2019, 9:50:50 AM

Get a fast, very cheap investment in the united states within 48hours; The address to your loan request: creditfunding@india.com

Nov 26, 2018, 3:18:07 AM

Very nice article. Please check for our new billing software

Comment here...

Login / Sign up for adding comments.