Technology

International Distribution

This client is a fast growing technology company based in the UK. A market leader in field service supply chains, it is now extending its services across Europe.

The business had entered into an agreement with one of its international customers to provide services in France. The client had been advised that its trading activities would be subjected to UK tax and had negotiated a contract with its customer on this basis.

The business made an application for refund of several hundred thousand Euros of French VAT under the 8th Directive refund mechanism. The claim was subsequently rejected by the French authorities on the grounds that because of the nature of the services they were providing, the client had an obligation to register for VAT in France.

Accordance was commissioned to investigate, and concluded that – when local rules were taken into consideration – a registration was indeed appropriate.

As a consequence Accordance back dated the VAT registration to the start of trading, resubmitted all sales invoices to include French VAT, and included all purchase invoices from the rejected 8th Directive claim. Additionally Accordance also dealt with the credit notes that had to be raised for the VAT on all of the UK invoices.