Are you paying the correct EU VAT?

Following the recent EU referendum, we have been considering the impact of European VAT for global companies. Understandably, our international clients are not always familiar with EU VAT.

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We recently had a client who had paid a number of large invoices from international suppliers – all of which had incorrectly charged EU VAT amounts. Having paid the VAT, our client was unable to recover it themselves from a tax authority so was left to negotiate credit notes or refunds with their suppliers instead. Such an error not only negatively impacts cash flow, but can be timely to resolve.

For businesses suffering large amounts of EU or non-EU VAT, we advise seeking guidance on the treatment of foreign invoices before these are paid as the charges may be incorrect. Processing such invoices can be outsourced fully to us, where our team would review and reject any that are inaccurate and assist with recovering any overpaid VAT.

For more information on this issue, please contact Global Business Services senior manager Ben Hooper at ben.hooper@blickrothenberg.com.