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The Coronavirus tax and VAT aftermath: How VATBox can help

The Coronavirus tax and VAT aftermath: How VATBox can help

In these uncertain times, we at VATBox wanted to express our concern and support for you, your families, communities and businesses. Our hearts go out to anyone who’s been impacted by the virus, either directly or indirectly. We are committed to doing all we can to ensure the health and well-being of our colleagues and doing our part to slow the spread of the virus in our communities while being available to support you and your businesses during these unprecedented times.

As the weeks go by and COVID-19 spreads, the economic impact has increased in scope as well. These are tough times for companies everywhere.  The effects of the virus are being felt across almost every industry worldwide.  In these uncertain times, many companies are looking for new and innovative ways to increase their bottom line while streamlining their day-to-day operations.

VATBox can help you maximise your VAT return in these challenging times. Currently, with business travel at a temporary standstill, identifying other areas where non-claimed VAT can be found is more important than ever. Typically, unclaimed VAT can be found in P-Card spend, Foreign VAT in Accounts Payable, and any past business travel and event spend for which VAT has not yet been recovered. Depending on the country, Domestic VAT can be claimed for up to five years back, and 2019 Foreign VAT is still possible as well. There are even VAT recovery opportunities for business trips cancelled recently due to the governments’ travel restrictions.

Tips for enterprises how to deal with the aftermath of the Coronavirus

As the world waits with bated breath for the eradication of the coronavirus, forward-thinking enterprises are recognising this crisis a wake-up call and preparing their businesses for the next disaster.  Some tips:

  1. Digitalise tax: Enterprises will be forced to deal with numerous tax matters remotely, to ensure their business remains compliant while protecting the health of employees. Digitalisation facilitates tax-related activities, including invoice issuance, tax filing, VAT refunds and reimbursement claims.
  2. Manage cash flow: Enterprise cash flows may be affected for some time and must be managed. Some actions that businesses can take include applying for tax filing and payment extensions, more quickly processing tax refunds and optimising tax-deductible losses.
  3. Familiarise yourself with changing tax policies: Although the picture changes constantly, an overview of the current measures per country can be found HERE.
  4. Extract the full value from your existing travel and expenses (T&E): Now is the time to put the proper infrastructure in place to streamline the T&E process for when travel resumes in earnest.
  5. Ensure your VAT/tax processes are airtight: Leverage existing innovative platforms – such as VATBox – that are automatically updated with new tax rules. In times of crisis, the right technology can help you thrive in today’s complicated financial times.
  6. Engage with tax authorities: Proactively opening a dialogue with the tax authorities will go a long way to help support a business through any financial crisis, including extensions or even tax relief.
  7. Diversify the supply chain: Make sure all your eggs are not in one basket. Many businesses were caught off guard when their supply line was suddenly cut off and found themselves without an alternative. Now is the time to explore contingency plans, even if they come at a higher price.
  8. Prepare communication strategies: Now may be a good time to invest energy into your company’s communications efforts with stakeholders, staff and customers so when the all-clear signal comes – or when the next crisis hits – your business will be ready.

Here at VATBox, the safety and well-being of our employees and clients continue to be our top priority. As a tech-based company, VATBox is operating ‘business as usual’ thanks to an effective Business Continuity Plan. The majority of our team is working remotely and fully available to support our clients and business processes. In these uncertain times, our mission to empower tax and financial professionals like yourself to make strategic business decisions is stronger than ever. If you’d like to hear more about how VATBox can help you increase your bottom line, contact us for a free evaluation of your transactional data.

Stay safe, healthy and connected.

 

Isaac Saft
Founder and CEO, VATbox

 

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