ACCOUNTS PAYABLE

Reclaim foreign VAT incurred on your company’s Accounts Payable (AP) invoices. 

AP invoices from foreign suppliers attract significant foreign VAT charges, which is often refundable. However, the reclaim process is complex, leading many businesses to miss VAT refunds.

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VAT recovery on foreign Accounts Payable invoices.

Invoices from many activities /purchases abroad often contain VAT, which is recoverable from the relevant tax offices. The refund process requires in-depth knowledge of local VAT and supply VAT rules, which leads to missed opportunities.

Incorrectly charged VAT on Accounts Payable invoices.

Due to a lack of knowledge on cross border tax legislations, many suppliers often incorrectly charge VAT to their foreign clients. This incorrectly charged VAT is also recoverable directly from the supplier, however many companies do not have the inhouse expertise to identify these charges.
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Industries that typically have AP invoice reclaim opportunities.

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IT Service Providers / Telecoms companies

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Manufacturing and Production companies

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Pharmaceutical companies

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Retail / Consumer Goods companies

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Industrial equipment / construction companies

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Which expenses are eligible for reclaim?

Tooling

Tooling

Fixtures, injection moulding gauges, cutting equipment and patterns.

Supply & Installation

Supply & Installation

Installation of machinery, infrastructure, and pipelines.

Premises Rental & Purchase

Premises Rental & Purchase

Venue hire, infrastructure expenses such as data centres, technical support office.

Professional Services

Professional Services

Engineers, consultants, lawyers, real estate agencies, maintenance/management fees.

Training & Events

Training & Events

Venue hire, restaurant/catering, transport in relation to training or events abroad.

MICE & Tour Operators

MICE & Tour Operators

Packaged foreign travel expenses such as accommodation, car hire and flights.

Airlines/Aircraft Operators’ Expenses

Airlines/Aircraft Operators’ Expenses

Mineral & oil tax for fuel costs, passenger aviation tax compliance costs, fuel invoice costs, corporate plane repairs or maintenance.

Import VAT

Import VAT

Warranty parts shipped overseas, goods purchased for manufacturing projects overseas, goods shipped overseas – DDP shipping (Delivery Duty Paid) or Storage at Data Centers located overseas.

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The challenge of reclaiming VAT on Accounts Payable invoices.

  • Cross border VAT transactions require detailed knowledge of local VAT and supply of goods/services VAT rules.
  • Rules, deadlines and filing requirements change constantly.
  • Up to 60% of foreign AP invoices charge VAT incorrectly.
  • Reclaiming incorrectly applied VAT is time consuming.

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 VAT, resulting in cash-flow optimisation by not paying VAT where it is not due.
  • VAT Reclaim: Correctly charged VAT recovered via tax office application. Incorrectly charged VAT recovered from suppliers.
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