In his latest article for Financial Director, Nicholas Hallam discusses the complexities of cross-border VAT Recovery.
VAT Recovery went through major reform in 2010 as part of the ‘VAT Package’, and while there is consensus that this has improved the ease of filing straightforward T&E claims, there is greater risk associated with attempting to recover larger accounts payable refunds.
What is the nature of the transaction? Ought VAT to have been charged at all? Would a registration actually be the appropriate solution? What do the underpinning sales contracts imply? Will suppliers provide credit notes if they have got it wrong?
You can read the article in full here.