Pharmaceutical companies losing millions in unclaimed VAT refunds each year.
Pharma companies miss huge opportunities each year by not reclaiming VAT on tooling, clinical trials and trade show costs. VAT Reclaim is a complex environment due to ever-changing rules and legislation. If your organization operates in multiple jurisdictions, it is critical to maintain full visibility and control. This can become a difficult task when dealing with multiple tax offices across numerous regions.
There are many ways VAT reclaim can save money for pharmaceutical companies and increase their bottom line – and VAT reclaim does not have to be as complicated as you think!
Reclaim VAT on Tooling
If you are in the pharmaceutical industry, then you will be aware of the extraordinarily high costs of tooling. Production techniques for metal and plastic tools and machinery have a high set up cost. However, there is a way to lower these costs – by reclaiming the foreign VAT on your invoices where applicable, you can cut your tooling expense by up to 27%.
Reclaim VAT on Clinical Trials
As clinical trials become more global, organizations face an array of financial, contracting and compliance challenges. One of the biggest challenges is the impact of VAT. Import VAT is applied on all goods that are shipped to Europe for testing and trials. As the geographic reach of clinical trials widen, VAT stands to have an even bigger impact on budget, cash flow and bottom line performance. Understanding the influence of VAT on your clinical trial costs can help you avoid budgeting pitfalls, and provide the best chance of reclaiming the VAT incurred.
Reclaim VAT Travel & Expense
With global business travel spend on target to hit $1.7 trillion by 2022, (GBTA BTI Outlook – Annual Global Report & Forecast 2018), companies are continually looking for fast ways to add money back on to their bottom line. As business travel spending increases so sharply, companies who are not reclaiming VAT on their employees corporate travel spending are missing a huge revenue stream.
If you think your pharmaceutical company is losing money as a result of unclaimed VAT on costs such as tooling, import VAT on clinical trials, employee travel, exhibitions and trade shows, Taxback International can help you reclaim this money.