The VAT amount element is detached from the buyer's payment and is remitted electronically to the tax revenue authority from the buyers’ bank account
The VAT amount element is detached from the buyer’s payment and is remitted electronically to the tax revenue authority from the buyers’ bank account. In doing so VAT never reaches the account of the merchant
MOBIVAT is a system tracks each transaction, provide ability to block fundsso that they navbar-header reach the merchant bank account by using split payment mechanisms, and ensures thst that allowable VAT reclaims are paid rapidly and authomatically in case of electronic payments the VAT-CLAIM can be process on the same day as the collection.
Intervening in the payment and collection cycle in a most effective way to ensure the VAT is paid by tracing the transaction real-time
Removing the need for merchants to collect and account for VAT on behalf of their Tax Authority, and removing the opportunity for collected VAT funds to be misappropriated; Monitoring the full supply chain B2B, B2C ...cash/eft/cc;
The VAT element is split off from the buyer's paymeny and is separately (electronically remitted to the tax authority from the buyer's bank account; the VAT never reach the merchant account).
With EFT the refund of deductible VAT is possible same day the VAT is received by the TAX Authority
1. MobiVAT gateway is designed as aprocessor agnostic gateway using
pluggable architecture and is not tied to a specific bank or a specific credit card
processor to handle electronic payments
2. MobiVAT gateway exposes a simple, unified API that can be used by merchants and software vendors to split payment and send credit card transactions and RTGS payments to payment processors and banks of their choosing in a completely transparent way.
3. In the context of payment processors, this
payment process is realized through the split payments mechanism that implies distribution of
the transaction amount between the Merchant and the Tax Revenue Authority according to particular
split rules, for real-time or batch transactions. The split payments mechanism involves two phases:
transaction processsing and remittance
4. Once transactional data is ready for remittance, MobiVAT Gateway will send two separated transactions to the Payment processor to be remitted respectively to the Merchant account and the Tax revenue Account. It is to be noted that the card processor will be hit by too separate transactions Merchant and KRA and process them accordingly.