MasterCard and Luxembourg-based VAT IT have entered into a partnership to introduce first cloud based automated VAT recovery for credit card transactions in Asia-Pacific region.
VAT Cloud, powered by VAT IT, integrates with issuing bank data to allow analysis and recovery of VAT embedded in credit card data.
MasterCard, in a statement, said that the cloud system automatically connects an issuing bank’s MasterCard credit card data to the tax office, while identifying potential VAT reclaims through transaction data.
The cloud system then sends the data in the VAT reclaim formats to the tax office, following the transfer of VAT claims to the business’ bank accounts.
Fee will be charged only for the successful VAT claims, calculated as a percentage of the claim, while for unsuccessful claims there will be no charge.
MasterCard’s Asia-Pacific commercial products and solutions head Philip Glickman said: "The seamless automated process also provides a paperless and fully digital trail, such that you can trace every step of the process down to granular detail. This is another example of how MasterCard is dedicated to helping businesses make and trace business-related payments more efficient."
VAT IT CEO Saul Goldstein said: "Beyond the cost savings, VAT Cloud provides businesses with peace of mind as the entire process is safe and secure, and they can conveniently check and trace the progress of the claims."