Way2VAT launches AI-driven auditing innovation for enhanced VAT and GST compliance

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By Imelda Cotton - 
Way2VAT ASX W2V financial technology AI-AP compliance

Fast-growing fintech Way2VAT (ASX: W2V) has launched an artificial intelligence (AI)-driven accounts payable (AP) auditing product to complement its existing suite of claims and returns solutions for VAT (value-added tax) and GST (goods and services tax).

Known as AI-AP Compliance, the automated product uses an innovative ‘document first’ technology to verify proper submission of AP and domestic VAT and GST expenses to tax authorities on invoices up to four years old.

It has been designed to check for common mistakes, identify wrongly-submitted expenses, report on unpaid invoices or redundant VAT recovery, pinpoint errors and advise the required action for invoices across 80 countries.

It is the only product of its kind that can manage regulations across any tax jurisdiction and the complexity involved in shipping goods internationally.

It also ensures businesses account for reverse charges correctly.

AI-AP Compliance is aimed at large and multinational companies looking to maximise VAT and GST returns and ensure they meet compliance regulations across multiple trading jurisdictions.

New revenue stream

Chief executive officer Amos Simantov said the product is expected to create a new revenue stream for Way2VAT based on a fixed fee per audited invoice and 20% of unclaimed refunds.

“Many companies use external advisors to perform invoice audits.”

“This not only takes a lot of time and is costly, but opens a company to risk and potential fines for improper VAT/GST treatment as external advisors tend to only do spot checks on a sample of invoices.”

“AI-AP Compliance operates at magnitudes quicker than manual auditing of spot invoices, it reducing the time for processing from months to days.”

“It significantly reduces risk by automatically ensuring all invoices are compliant with various VAT/GST rules and regulations and verifying the correct amount of [tax] has been charged or paid.”

Multinational scale

AI-AP Compliance will remove the risk of errors for businesses with operations in multiple countries and jurisdictions such as those in transport and logistics, raw materials, energy, products and equipment, leasing and licensing, services, security and maintenance.

Mr Simantov said it will be offered at a competitive standard rate per invoice plus 20% of unclaimed refunds and that Way2VAT would work with clients with a minimum of 10,000 invoices to be checked.

The product will be rolled out across the company’s existing client base over the coming months.