Cost Cutting Foreign VAT Opportunity

Every year businesses needlessly give away millions of Euros and Pounds in unclaimed foreign VAT.

VAT is meant to be a tax imposed on final consumers and not on a business.  Businesses act only as a collecting agent but 90% of these fail to reclaim their entitlement to foreign VAT.   These businesses unwittingly add up to 20% to their foreign costs

A recent survey indicated that other European businesses are twice as likely to reclaim foreign Vat, as are UK or Irish enterprises.  Smaller enterprises in these countries are even less likely to reclaim than their larger counterparts.

There are several reasons for this great giveaway. 

Businesses are unaware of the fact that they are entitled to reclaim VAT incurred on services abroad.

Some businesses are aware of the entitlement but are put off by the procedures involved, and see it as a distraction from their core activities.  They may feel at risk in approaching a Foreign Fiscal Authority.

In most European countries it takes approximately 6 to 8 months to receive a refund and as a result many companies don’t pursue repayments even though significant sums could be involved.

Companies lack the expertise to get around the layers of Fiscal bureaucracy. Without extensive knowledge of each foreign country's legislation and the necessary practical experience, businesses find it almost impossible to obtain refunds.

European VAT legislation (8th VAT Directive) is framed to ensure a level playing field for all businesses.  It aims to ensure that foreign businesses cannot be disadvantaged by additional VAT costs, which a local business can automatically recoup through its monthly VAT returns.

Global Tax Reclaim helps businesses assess their entitlement on a “no obligations” basis. Global Tax Reclaim can then provide the reclaim service. Fees for this service are based entirely upon successful refunds and are only charged when refunds are received.

A major feature of Global Tax Reclaim’s service is that it requires minimal input of a client’s resources or manpower. Global Tax Reclaim can perform the whole procedure from start to finish.  Total confidentiality is assured.

Clients are regularly updated on the status of their claims.

If you require any further information or would like to avail of our services, please contact us.

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