Automated VAT recovery platform delivered $100K in just four months
With industry estimates suggesting that $20 billion in VAT is left unclaimed annually, enterprises are proactively seeking solutions to ensure their foreign VAT is recovered and all VAT-related processes are properly integrated within their business models. Ensuring a correct VAT recovery process enables maximization of VAT refunds, improved cash flow and avoidance of non-compliance
Prior to 2016, Monsanto/Bayer, a Fortune 500 multinational agrochemical and agricultural biotechnology company, experienced significant management difficulties with both foreign and domestic VAT. T&E invoices were decentralized. Domestic VAT recovery was handled on a local level, if at all, resulting in language challenges and lack of visibility that led to a large number of human errors.
Partnership with VATBox/Concur
After careful market research and reviewing competitors’ RFP responses, Monsanto engaged with VATBox to improve both foreign and domestic VAT recovery from the company’s T&E invoices.
As Monsanto utilized the Concur business travel and expense (T&E) management software to keep track of foreign T&E expenses enterprise-wide, as well as to manage the company’s purchasing card (P-Card) program, VATBox’s professional partnership with Concur was especially valuable. VATBox successfully leveraged the power of Concur’s easily-retrievable data to quickly and accurately identify and extract the information required to file VAT reclaims on the company’s behalf, making the VAT recovery process more productive and yielding higher returns for both foreign and domestic T&E domains.
Automation yields impressive results
VATBox’s intelligent, cloud-based VAT recovery solution utilized full automation to streamline the VAT recovery process, providing Monsanto with complete visibility, compliance, and data integrity. Based on both foreign and domestic tax rules and regulations, VATBox defined each transaction as domestic or foreign, calculated the eligibility of each transaction for recovery, and quantified its VAT recovery potential.
Bas de Koning, an Indirect Tax Specialist in Monsanto/Bayer, has been involved in the VAT and Indirect Tax industry for more than 20 years. Says de Koning, “Our previous vendor recovered €100K over 4 years. VATBox recovered €100K in 4 months!“
Continued success, one invoice at a time
Since 2017, VATbox’s platform has been integrated within 20 of Monsanto’s entities and has processed more than 300K invoices, representing a total spend of over €10 million. De Koning explains the value of VATBox’s automated solution. “Since 75% of our invoices included VAT below €10, most VAT recovery suppliers would not even bother with them, as it’s simply too much of an effort for them to process each one. However, that 75% represents 32% of my total VAT potential.”
With VATBox focusing on every single invoice, no matter how small, the VAT recovery potential is more than €2 million, a welcome boost to any enterprise’s bottom line.
The partnership’s success goes beyond the financial savings. According to de Koning, “VATBox transformed Monsanto’s financial culture by providing us with full visibility, transparency, and control over our global VAT spend. Their powerful analytics and segmentation helped us meet and exceed the industry benchmarks, company targets, and internal KPIs.”
On a personal level, de Koning is grateful to VATBox for easing his day-to-day responsibilities. “VATBox helps me do my job better by streamlining my daily tasks and giving me the time to concentrate on more strategic activities. To be honest with you, VAT recovery was never high on my to-do list, but with VATBox, we were able to get significant amounts of VAT back with very little effort on our part.”
He also appreciates the people behind the technology, acknowledging the important role VATBox’s team of experts has played in the partnership’s success and in keeping Monsanto’s team relevant and up-to-date at all times.
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For more information about how VATBox can help your company succeed in today’s complex financial climate, contact us.