Background and challenges
Electrolux, a renowned global home appliance manufacturer, became a client of in 2014. Our relationship began at an SAP Concur Fusion event, where we identified significant untapped potential in Electrolux’s VAT recovery process. By integrating our solution with SAP Concur, we quickly discovered that Electrolux was only recovering 8% of their overall VAT potential. Recognising the untapped reclaim opportunity, we worked with Electrolux to optimise their recovery process.
Before engaging with Fintua , Electrolux faced multiple challenges in their VAT recovery process:
Limited visibility on recovery opportunities: Their existing system lacked the ability to identify and capitalise on all available VAT recovery opportunities, resulting in substantial missed revenue.
Decentralised processes: Electrolux’s VAT recovery efforts were hindered by a highly decentralised process, with different regions managing VAT claims independently. This fragmentation led to inconsistencies in how VAT recovery was handled across markets, creating gaps in compliance, missed recovery opportunities, and varying levels of efficiency.
Poor client relationship and customer service: Their previous solution failed to deliver effective communication and support, which hindered Electrolux’s ability to fully leverage VAT recovery opportunities.
Manual, inefficient recovery methods: The recovery process relied heavily on manual tasks, making it both time-consuming and prone to errors. This outdated approach was a significant barrier to optimising VAT recovery.
Solution
To overcome the challenges Electrolux faced, Fintua implemented a tailored, data-driven approach that optimised their VAT recovery and identified a need for an automated compliance process.
Visibility on recovery opportunities: To address the lack of visibility into VAT recovery opportunities, we utilised our Recover Analytics solution to provide Electrolux with a comprehensive overview of their VAT data. This powerful tool allowed us to identify previously untapped recovery opportunities by analysing transaction data in real time, ensuring that every eligible VAT amount was captured. With clear, actionable insights, Electrolux gained a full understanding of their recovery potential, driving substantial improvements in their VAT reclaim rates.
Centralised and simplified VAT processes: Electrolux’s decentralised approach to VAT recovery across different regions resulted in inconsistencies and inefficiencies. To solve this, we simplified Electrolux’s VAT recovery process by leveraging our direct audit capabilities through the SAP Concur solution. This integration enabled seamless, automated data extraction and real-time auditing, eliminating the need for manual handling and significantly reducing errors. The consolidation also enabled consistent application of best practices, streamlined workflows, and harmonised compliance across all 30 countries, significantly enhancing operational efficiency and reducing the administrative burden on Electrolux’s internal teams.
Poor client Relationship and customer service: We transformed the client experience by providing dedicated account management and superior customer support, replacing the poor communication and service issues they faced previously. Our proactive approach included regular status updates, transparent reporting, and ongoing consultation to ensure Electrolux was always informed and aligned with the progress of their VAT recovery efforts. This strengthened client relationship resulted in greater trust, collaboration, and overall satisfaction.
Manual, inefficient recovery methods: The manual methods previously used by Electrolux were time-consuming, error-prone, and inefficient. By integrating with the SAP Concur solution, we enabled direct, automated auditing of all transactions. This automation eliminated manual errors, reduced processing times, and ensured every eligible transaction was reviewed in real time, maximising the recovery rate. The streamlined, digital approach allowed Electrolux to shift from a labour-intensive manual process to a more efficient, technology-driven solution.
VAT compliance: Recognising the need to further enhance their financial operations, we identified an opportunity to implement an automated VAT compliance solution for Electrolux. This addition will streamline their VAT management and ensure full compliance with varying regulations across all markets, reducing the risk of errors and penalties.
Results
Our partnership with Electrolux has delivered remarkable results.
3X VAT recovery in year one:
Within the first year, Electrolux tripled their VAT recovery rate by leveraging advanced analytics, automated processes, and centralised management.
10 X VAT recovery overall:
This transformation has led to a significant increase in recovery, now exceeding 70% of their total VAT potential.
Provider of the year:
Electrolux’s satisfaction with our services is evident, as we have been shortlisted and nominated for their “Provider of the Year” award on multiple occasions.
Future VAT compliance:
Building on this success, we are now expanding our support by adding VAT compliance solutions, which are currently at the onboarding stage. This will further enhance Electrolux’s ability to manage their VAT obligations efficiently across all markets, ensuring sustained compliance and continued recovery optimisation.
Electrolux
“The collaboration between Taxback International [now Fintua] and Electrolux has proven to be highly successful, transforming Electrolux’s VAT recovery process from a fragmented, inefficient system into a streamlined, data-driven operation. Our ongoing work has not only delivered exceptional financial results but has also strengthened our relationship with Electrolux. As we expand our services to include VAT compliance solutions, we are confident that this partnership will continue to thrive, delivering sustained value and ensuring Electrolux remains at the forefront of VAT recovery and compliance excellence.”
