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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.

  • Tooling - industrial metalworking cutting process by milling cutter
    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.

  • Cooling towers in data center - Supply & Installation VAT Reclaim
    Supply & Installation

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

  • Office Towers - Premises Rental & Purchase VAT Reclaim
    Premises Rental & Purchase

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

  • Professional Services VAT Reclaim - Financial advisor meeting with satisfied investor
    Professional Services

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

  • Woman asking questions during launch event - Training & Events VAT Reclaim
    Training & 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 VAT Reclaim - travel agency office and staff
    MICE & 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 VAT Reclaim - Hangar with jet
    Airlines/Aircraft Operators 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 Reclaim - Container ships at dock
    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

  • 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.
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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 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.