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.

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.

Which expenses are eligible for reclaim?

  • Tooling

    Fixtures, injection moulding gauges, cutting equipment and patterns.

  • Supply & Installation

    Installation of machinery, infrastructure, and pipelines.

  • Premises Rental & Purchase

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

  • Professional Services

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

  • Training & Events

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

  • MICE & Tour Operators

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

  • 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

    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.

     

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.