VAT

Maximising VAT savings for large multinational software company

Situation & Challenges

The company were facing a number of challenges Including unidentified VAT recovery and incorrectly charged VAT on AP invoices across a four year period. 

Ayming was the chosen partner to deliver and maximise VAT savings for this large multinational corporate and increase the bottom-line savings in taxation. This initial set up of the project involved the mapping of business activities to enable the scope of the project to be realised. 

Our project spanned 10 jurisdictions globally, therefore complex analysis needed to be carried out to verify the eligibility of the VAT charged and the right of recovery.

What we did

Data integrity check: A sample data set provided to ensure all information required was captured.

Data transfer and preparation for analysis of all data.

First stage analysis: Data reviewed and potential anomalies identified and invoices requested.

Second stage analysis: First stage results reviewed against invoices received.

Preliminary results compiled and sent to client for verification whether adjustments have been made.

Request to suppliers to re-issue invoices where VAT was incorrectly charged.

Final report sent to client.

And How We Helped...

 

  • The Ayming UK team identified £600,000 of savings of unclaimed or incorrectly charged VAT across multiple European jurisdictions.
  • Provided recommendations for future processes ensuring a robust system is in place to protect future revenues and plan for tax liabilities.
  • Monitored tax liabilities to prepare for changes in reporting requirements.

 

About Our Client

A leading multinational software company, offering comprehensive and fully integrated cloud applications, platform services and engineered systems.