VAT Fraud Analytics

VAT Fraud Analytics

Preventing VAT tax fraud can save countries worldwide billions—but how can so

many complex, multi-national transactions be effectively monitored?

  • The value-added tax, commonly called VAT, is applied in more than 160 countries worldwide
  • It’s levied on the price of products or services at each stage of production, distribution or sale
  • If the ultimate consumer is a business that collects and pays the government VAT on its products or services, it can reclaim the tax paid
CAP*M VAT Fraud Analytics monitors VAT collection from retail activities

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.

Comprehensive VAT Reporting and Analytics

  • Supports enforcement of VAT compliance; saving governments millions
  • Provides automated, real-time encrypted reporting of all taxable transactions
  • Enforces authentication of invoice reporting from the point of sale
  • Advanced analytics for comprehensive fraud reporting, identification and prevention

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.

A robust big data system that allows real-time analysis of VAT tax transactions

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.