Accounts Payable (AP) Invoices

Reclaim VAT incurred on Foreign AP Invoices

Accounts Payable Invoices from foreign suppliers attract significant foreign VAT charges which is often refundable. Many businesses miss this VAT refund as the VAT recovery process can be complex. That’s where Taxback International can help.

Find Out How

VAT Recovery on Foreign Accounts Payable invoices

Taxback International are experts in AP VAT Recovery! Did you know that $30 billion in VAT goes unclaimed each year? Expenses incurred through these foreign suppliers are material and attract significant foreign VAT, but many companies are not aware that this cost is refundable.

We have in-depth knowledge of each country’s VAT deadlines and VAT filing rules, which streamlines the refund process and eliminates missed opportunities.

Accounts Payable department
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Opportunity to reclaim up to 25% on projects abroad

Each country has its own specific deadlines and rules with different administrative filing practices. This makes identifying and qualifying opportunities for AP VAT refunds time consuming and burdensome, especially across multiple markets. Many companies are simply not aware of the fact they can reclaim foreign VAT on accounts payable invoices which leads to them missing out on huge foreign VAT reclaim opportunities.

Taxback International have the expertise in legislation, foreign language support and relationships with the local tax offices and can effectively manage the VAT refund process.

Speak to one of our VAT experts to discover more

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Industries that typically have AP Invoice reclaim opportunities

  • Telecommunication

    IT Service Providers / Telecoms companies

  • Tools

    Manufacturing and Production companies

  • Medical Products

    Pharmaceutical companies

  • Export

    Retail / Consumer Goods companies

  • Professional Services

    Industrial equipment / construction companies

Which expenses are eligible for VAT Reclaim on AP invoices?

Your company is eligible to recover VAT on Accounts Payable invoices in eight business spend categories:

  • Tooling - Accounts Payable
    Tooling

    VAT Recovery is available on fixtures, injection moulding gauges, cutting equipment and patterns. VAT on tooling can add up to 27% to production costs.

  • Supply & Installation - Accounts Payable
    Supply and Installation

    VAT Reclaim is available on installation of machinery, infrastructure, and pipelines.

  • Premises Rental & Purchase - Accounts Payable
    Premises Rental and Purchase

    VAT Recovery is available on premises rental, infrastructure expenses such as storage and data centres and technical support office.

  • Professional Services - Accounts Payable
    Professional Services

    VAT Recovery is available on services provided by Engineers, consultants, lawyers, real estate agencies etc and maintenance/management fees.

  • Training & Events
    Training and Events

    VAT Recovery is available on Venue hire for training or events, restaurant/catering costs and transport abroad in relation to training or events.

  • MICE & Tour Operators
    MICE and Tour Operators

    VAT Reclaim is available Meetings, incentives, conferences and events (MICE), these include packaged foreign travel expenses, accommodation, car hire and flights.

  • Airlines Aircraft Operators Expenses
    Airline and Aircraft Operator Expenses

    VAT Recovery is available on Mineral & oil tax for fuel costs, passenger aviation tax compliance costs, fuel invoice costs, corporate plane repairs or maintenance.

  • Import VAT
    Import VAT

    VAT Recovery is available on Warranty parts shipped overseas, goods purchased for manufacturing projects overseas, goods shipped overseas and DDP shipping (Delivery Duty Paid).

     

The challenge of reclaiming VAT on Accounts Payable Invoices

Foreign VAT is paid on certain types of business transactions but is often missed by finance departments. Our research has shown that the main reasons for this include:

  • Companies lack the time to quickly identify foreign VAT reclaim opportunities on accounts payable invoices. Many accounts payable invoices fall outside the standard procure-to-pay process and are more difficult to identify.
  • Reclaim of VAT on foreign AP invoices is subject to time limits which are dictated by local tax rules. Companies only have a limited window of opportunity to seize their VAT refunds.
  • VAT can often be charged incorrectly by suppliers, meaning the wrong VAT amount is paid by businesses. This is reclaimable via the supplier but requires specific knowledge to identify.
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Our complete Accounts Payable solution

  • AP Planning: Consultancy on the correct way to handle foreign VAT on projects abroad considering the full place of supply roadmap for each project.
  • AP Screening: Check all invoices to identify incorrectly charged foreign VAT, resulting in cash-flow optimisation by not paying VAT where it is not due.
  • VAT Reclaim: Correctly charged VAT is recovered via tax office application. The incorrectly charged VAT is recovered from suppliers
Accounts Payable department

Talk to our team about how our Accounts Payable solution can work for you.

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