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MasterCard has launched a service which will facilitate the recovery of VAT in
36 countries.
The VATrecovery service provides large and small businesses around the world
with a fast, easy and efficient way to recover up to 100% of the eligible
domestic and foreign VAT they incur.
The service provides a unique, end-to-end solution which has three elements:
► A Best Practice Guide to educate companies how to maximize VAT recovery.
Developed by KPMG, the VAT Best Practice Guide will help companies using
MasterCard Corporate or Purchasing Cards to further optimize their card programs
by providing practical tips and advice about how to maximize VAT recovery.
► A reporting component which provides
on-line visibility on the potential recoverable VAT amount in various countries.
► An outsourcer, Meridian, to ease the VAT recovery process.
MasterCard has engaged Meridian to provide business customers, both large and
small with a fast, easy and efficient way to be able to recover their foreign
VAT at exclusive, pre-negotiated rates.
Once a company has registered for the
service, Meridian handles all the steps from receipt of invoices through to the
refund of VAT – which can be made in the currency of the company’s choice –
directly to their bank account.
The VATrecovery service uses technology, which enables MasterCard commercial
cardholders to see, on a real-time basis, how much VAT they have paid as part of
their card spending as well as an estimate of how much they are entitled to
recover.
This information is available directly via Smart Data Online or it can be
integrated into issuers’ proprietary reporting systems.
Steve Abrams, Global Group Executive, Commercial Products, MasterCard Worldwide,
commented: “The fact that over 86% of EU businesses experience difficulty
recovering VAT paid outside of their domestic market and forgo up to €5 billion
in VAT re-claim every year prompted our development of a unique, automated
solution to assist our issuers and their customers.
"Combining the use of a MasterCard Corporate or Purchasing Card, SmartData
Online, and Meridian’s back-end is a terrific solution for providing businesses
additional cost-savings opportunities".
Mark O' Riordan, CEO of Meridian VAT, added: “We are delighted that MasterCard
has chosen Meridian as their partner to deliver this highly valuable service to
their commercial card customers.
"The right to recover VAT from foreign jurisdictions is available to ensure
competition and equity but is extremely complex.
"We are the recognized leader and innovator in this field and through this
relationship with MasterCard will be able to provide businesses large and small
with the opportunity to exercise their right to recover VAT.
"Our service is the most comprehensive VAT recovery service available and
provides tangible added value to both cardholders as well as the card issuers.”
Source:
Getting Paid
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