The questions finance directors ask us first.
Why do I need a review? Don’t my auditors check VAT?
No. Your auditors check that your financial systems are accurate: that sales reached the bank, and that the VAT control account matches what was paid over. They test the totals.
They do not test whether the VAT itself was right: whether the correct rate was charged, which can depend on the product or where the customer is, whether VAT was due at all, or whether every claim was made. That is what a Blumont review does, and why it so often finds money an audit has passed.
How far back can a company claim missed VAT?
It depends on the country. In South Africa claims can go back five years, and in Ireland and the United Kingdom four. Elsewhere in Europe it varies by country. We confirm the exact position for your business at the start of a review.
What does a review cost?
Nothing upfront. Blumont invoices only once a recovery has been realised, so the review pays for itself or costs you nothing.
Do you deal with SARS, Revenue or HMRC on our behalf?
No. We work only with you and your team. You decide what is claimed and you submit it.
How much of my finance team's time will it take?
Very little. We work from a single data request and come back with findings. One client said it was as simple as sending over some spreadsheets.
Our processes are strong. Why would there be errors?
Even the best companies have blind spots. Staff changes, working from home, new accounting software and changes in legislation all affect how VAT is processed. Automation does not remove those errors; it repeats them, every month, until someone checks.
Do you use AI? Can’t AI do this already?
We harness AI; others rely on it. Some of our largest recoveries come from businesses that trusted automation and software intelligence too much. We are the ones who check that automated VAT systems and processes are actually working.
AI is a useful tool, but it is not yet capable of understanding and investigating complex VAT structures and processes to find the errors that matter. You get human expertise with AI efficiency.
Will a review reflect badly on our finance team?
The work is about recovering money, not finding fault. We work alongside your finance team to uncover errors and streamline your systems and processes, so the benefits last well beyond the review.
Is our data safe with you?
We work under your NDAs and data protection policies, with controlled document verification and one dedicated analyst, and we are trusted by multinationals and semi-state companies with demanding protocols.
Which accounting systems do you work with?
Any. We have recovered VAT for clients on SAP, Oracle, Sage, Xero and Syspro, and we work on whatever accounting software you run.
Where VAT most often goes missing
Bad debt relief
When you invoice, you usually pay over the VAT straight away. If the customer never pays, most VAT systems let you reclaim it, provided certain conditions are met. Many businesses never do, because the write-off and the VAT return sit in different systems.
Input tax apportionment
A business making both taxable and exempt supplies can recover only part of its input VAT. Turnover is the usual basis, but it is not the only one, and it does not always reflect how costs are really used.
Cross-border transactions
Many cross-border supplies are zero-rated, but only when specific conditions are met and documented. Get the paperwork wrong and VAT is charged where it need not be.