Recover up to 27% on manufacturing costs.

Production processes are unique, often requiring specific machines and tools for each component, with a cross-border trail of shipments and transactions. Accounting for, and reclaiming VAT on such transactions is a complicated procedure requiring in-depth knowledge of place of supply and local VAT rules.

Key Issues

  • 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 70% of foreign account payable (AP) invoices charge VAT incorrectly,
  • Reclaiming incorrectly applied VAT is time consuming.

VAT on Tooling is a key concern for companies in the following industries:

Automotive

Aerospace

Pharmaceuticals

Consumer Goods

What Taxback International can do for you?

  • Planning: Taxback International provide consultancy on how to handle foreign VAT on all tooling projects. We consider the full place of supply roadmap for each project, assessing every possible scenario for cross border transactions and identify any arising VAT obligations.
  • Screening: Taxback International 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 is recovered by Taxback International via tax office application.
    • Incorrectly charged VAT is recovered from suppliers, while educating the supplier on the correct VAT treatment to ensure correct application in future engagements.
Contact our EMEA team today

“Taxback International transformed our VAT recovery process, increasing our claim by 10X”

Download more information about our VAT on Tooling solution.

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