As someone who has worked closely with businesses that struggle with VAT recovery, I’ve seen firsthand how frustrating it can be for partially exempt organizations to navigate the complexity of VAT rules. Whether you’re for example in financial services, fintech, or healthcare, you’re dealing with the challenge of balancing VAT-exempt and VAT-taxable activities, and often, the methods traditionally used to recover VAT fall short.

That’s why we created Smart VAT Recovery—to offer a better solution.

Why This Tool Matters

For partially exempt businesses, recovering VAT isn’t straightforward. The general pro rata method, which many companies rely on, might meet compliance requirements but often leaves money on the table. I knew there had to be a smarter, more tailored way to approach this challenge—one that could help businesses recover VAT, improve their cash flow without getting bogged down in complexity, and ensuring compliance & full auditability.

With Smart VAT Recovery, we’ve built a tool that simplifies the process. It uses AI to analyze your costs and business activities, then offers you and your accountant tailored options for optimizing VAT recovery. It’s designed to fit the needs of your specific business, not just follow a one-size-fits-all formula.

How It Works

Here’s the basic idea:

• Easy Integration: You(r accountant) connects your accounting data and the tool starts analyzing your costs and VAT setup.

• AI-Driven Insights: Our AI reviews your transactions, business activities, and suggests the best methods for VAT allocation, tailored to how your business operates.

• Accountant’s Expertise: The tax expert and accountant remains in control, reviewing the options and choosing the approach that works best.

• Full Transparency: The tool generates detailed reports that ensure your VAT strategy is both optimized and fully compliant with tax regulations.

A Real Example

Take NewFin, for example—a fintech company that offers both VAT-exempt payment services and taxable IT services. For years, they used the general pro rata method to recover VAT, but it wasn’t fully serving them. By using Smart VAT Recovery, their accountant identified alternative methods that significantly increased their VAT recovery rate, leading to a much healthier cash flow. And they did it all while staying fully compliant with tax authorities.

Who This Tool Is For

We built Smart VAT Recovery with businesses like NewFin in mind. It’s perfect for industries like fintech, insurance, healthcare, property development, and charities—any sector where costs are used for mixed VAT activities make recovery a challenge. This tool can help you recover the right VAT amount and stay compliant.

Our Mission

We’re on a mission to simplify tax. Smart VAT Recovery was developed based on a simple idea: businesses shouldn’t be missing out on VAT recovery opportunities because the process is too complicated. We wanted to create a tool that doesn’t just solve the problem but does so in a way that’s intuitive, efficient, and, most importantly, tailored to the way each business works.

If you’ve been frustrated with your VAT recovery process, I invite you to explore Smart VAT Recovery. Let’s unlock the full potential of your VAT recovery together.