Way2VAT (ASX: W2V), a global leader in automated VAT/GST reclaim and compliance solutions, has announced a four-pillar growth strategy aimed at expediting profitability. Way2VAT leverages advanced technology to deliver digital tax processing solutions. The company’s products are built for the AI age. This strategic plan focuses on becoming the world’s leading digital tax processing company, expanding its total addressable market from US$20 billion to US$187 billion. The company anticipates an inflection point in 2025 as the execution of this plan accelerates its move towards profitability.
The four pillars of the growth strategy include: Global VAT Reclaim, APAI Real Time Invoice Compliance Validation, VAT Compliance Services (via M&A), and expanding into Real-Time E-Invoicing. The company has acquired DevoluIVA, expanded into Spain, and now serves over 414 global enterprise clients. In line with its third pillar, W2V announced it will acquire 100% of RBC VAT (RBC) for £2 million cash spread across 2 years. RBC VAT is a VAT advisory and compliance specialist business based in London serving top-tier global clients.
H1 FY25 results demonstrate robust growth, with revenue reaching A$2.49 million, a 43% increase year-on-year. Gross profit rose by 57% to A$2.05 million, achieving an 82% margin. Operating expenses decreased by 7% year-on-year following cost initiatives in December 2024, narrowing operating losses by 31%. Way2VAT is positioned for cash flow breakeven, combining margin strength with a leaner cost base. RBC VAT’s revenues are projected to grow 20% within 12 months due to Way2VAT technology integration. The combined forecast revenue is A$10m on an annualised basis following the acquisition.
