VAT is usually implemented as a destination-based tax, where the tax rate is based on the location of the consumer and is applied to the sales price. Non-resident tourists and companies located outside those countries are often eligible for VAT tax refunds for goods and services for export or business purposes.
There are certain restrictions and requirements that must be followed to be eligible for a VAT tax refund. Many large companies and companies that do international business work with a VAT refund company that handles the paperwork and procedures required to get VAT tax refunds.
Unfortunately, there are also widespread VAT fraud schemes where traders acquire invoices for purchases that were never made, with the intent to claim more refunds from tax-collecting authorities than they deserve. There are even established crime networks trafficking in such fabricated invoices, which business people purchase to defraud governments worldwide.
MLOGICA’s CAP*M VAT Fraud Analytics identifies VAT taxes legitimately paid, and ensures valid VAT tax refunds are credited to the proper entity, saving businesses and government worldwide billions.