Even though the VAT refund system IS complicated, there’s help to be had with AI-based booking algorithms. Kaunt, owning the market’s most advanced solution for automatic invoice handling, has absorbed pattern-based learning from the historic booking practice in over twenty-five Danish municipalities, has of course read the VAT refund system regulations, and has been trained one-on-one by leading accounting and VAT experts from PwC.
When municipalities and regions need a task solved, the choice may sometimes stand between solving it themselves or purchasing assistance from private vendors. To ensure that private vendors are not opted out of over the price, the state VAT refund system has been made available to municipalities and regions. The system is described within the VAT refund ordinance (http://tiny.cc/v32nmz), and it’s safe to say that it cannot be counted as leisurely reading to anyone but professional experts in the field.
The prerequisite for receiving money from the government VAT refund pool is that the expenditures of municipalities and regions are correctly recorded in the economic system. If this is not done from the get-go, it takes considerable investigation work to detect the errors after the fact. Bookkeeping in a typical, Danish municipality is handled largely by specialized professionals, i.e., the pedagogic supervisor at a daycare center or the administrative supervisor at a nursing home. Neither the pedagogic nor the administrative supervisor meet the requirements to master the complicated juridical content that permeates the VAT refund system. For that reason, bookkeeping errors occur naturally and almost predictably.
Even though the VAT refund scheme IS complicated, there’s help t be had with AI-based booking algorithms. Kaunt, owning the market’s most advanced solution for automatic invoice handling, has absorbed pattern-based learning from the historic booking practice in over twenty-five Danish municipalities, has of course read the VAT refund system regulations, and has been trained one-on-one by leading accounting and VAT experts from PwC. With Kaunt at the helm of bookkeeping, it is ensured that by tomorrow, the quality of your bookkeeping will be significantly improved.
When Kaunt is able to know what is the right thing to do tomorrow, it can, of course, also find historic bookkeeping errors. And this is the core of Kaunt’s solution, VAT Review. We scan 5 years of historic data. Train a bookkeeping model. Use learning from more than twenty-five public clients and detect all historic posting entries that are likely to contain errors. With that, the “conjecture list” is expanded with all entries belonging to fields in which PwC professionals know from experience that systematic errors occur. Lastly, PwC will conduct a cleanup and quality assurance, master appendixes are authorized, and the result is summarized.
When algorithms meet professionals, it unites the best of both worlds. The algorithms see patterns and can clean up extensive amounts of data and point the spotlight to areas of interest. The experts know the legal matter and have experience in the areas in which almost everybody commits errors. Altogether, algorithms and experts are a winning team. This can benefit you as well.
Kaunt’s solution, VAT Review, solves the task through and through. We take care of procurement of data (at no cost), input, processing and analysis of data – utilizing both algorithms and expert assistance from PwC. We outline the result of the analysis and prepare the data you need for both necessary reentries into your economic system, reporting to your own auditor and reporting to the Ministry of Social Affairs and the Ministry of Interior Affairs with regards to collecting VAT refunds. No unexpected expenses, no drain on internal resources, no need to double check our efforts – since it has already been checked by PwC.
And more than once. With Kaunt’s solution, VAT Review, we have already helped more than twenty public authorities in Denmark. In each case, errors have been remitted and VAT refunds brought home – to the benefit of “the public” and authorities’ budgets. In other words: We know what we’re doing and have time and again proven that we create unique results.