MasterCard partners with VAT IT to introduce card transactions VAT recovery system

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 better cost management by using an automated and technology-based service that enable integration with issuing bank data to allow analysis and recovery of VAT embedded in credit card data.

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.

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.