SUCCESS STORY

Focused Persistence Recovers $738,252 for Automotive Manufacturer

In 2016, a UVS client a South Carolina-based, major auto manufacturer sent in some invoices. Our VAT refund audit team scrutinizing the batch discovered an invoice with an unusual transaction. The VAT charged and paid on a machine tool was manufactured for the US client but the item was shipped to a third party within Germany. Why? The tool was used to manufacture frames, water drainage systems, and other parts of an automobile. While the manufactured parts were shipped to the USA, the tool itself was to always remain in Germany. When UVS filed for the VAT refund, the German tax authority raised several complex queries, some of which needed UVS to seek legal counsel. Eventually, the Tax authority accepted all the UVS responses and refunded the complete VAT that had been charged. Such VAT that would not normally be the concern of a recovery company. UVS made it their business to go after the refund. Thorough analysis and a sustained effort made the VAT refund possible. It was the single largest refund of the year.

SUCCESS STORY

Detailed knowledge of UK VAT laws helped reverse a negative decision

UVS had filed for a VAT refund claim of UK£ 3,400 for an aerospace industry customer, on catering related expenses incurred at the Farnborough Airshow (2014). The UK Tax Office, Her Majesty’s Revenue and Customs (HMRC) at Londonderry, however, rejected the claim in April 2016. Their reason: “Entertainment expense is not a VAT deductible item.” UVS contested the case, quoting the ruling VIT43200 in HMRC guidelines, which states clearly that foreign customers are exceptions, and that VAT is deductible if expenses are incurred for foreign customers. Londonderry did not accept our argument. Worse, they penalized our USA based client for making an incorrect claim.
The UVS team however, did not give up. They contacted HMRC Business Head Unit Manager at their New Castle office and appealed for “reconsideration” of the Londonderry HMRC decision, once again quoting the VIT 43200 ruling. HMRC New Castle reversed the Londonderry decision and granted our aerospace client a full VAT refund.

SUCCESS STORY

Refund of $379,148 From US Based German Supplier – German VAT Charged In Error

A client sent UVS two invoices with a total German VAT value of €345,415 ($379,148), The VAT charged was 19%. The invoices had been issued by a US based supplier whose parent company was German (they supplied plastic fuel systems and emission reduction related items to the UVS client). As the supplier had a German registered VAT number, they were obliged to charge the German VAT.
Our role, in this case, was to work with the supplier in the USA and make the necessary corrections in the original invoice to ensure that it was completely compliant with German VAT regulations. Once this process was complete, UVS filed for refund and recovered the total VAT charged.

SUCCESS STORY

Mobile Phone Manufacturer Recovers US$ 68,000 On Canadian Phone Repairs

One UVS client, a Japanese mobile phone manufacturer with branches in the USA, was sending faulty phones to Canada for repair. UVS realized that the Canadian phone repair company was charging VAT on their services. Since Canada refunds VAT, UVS obtained authorization from the US company to recover the VAT. UVS’ “discovery” and follow up action resulted in savings estimated at US$ 68,000 for the US Company. The additional benefit would be an ongoing savings of $68,000 and more each year.

SUCCESS STORY

Saving Of $97,000 – Going Forward, Guaranteed Annual Savings of $52,000

In the fall of 2016 a Study Abroad department of a Florida based State University contacted Universal VAT Services (UVS) to review European Study Abroad expenses incurred by the school since 2014. Based on past, successful experience with a North Carolina based private educational institute, UVS knew that the London based University should not have charged 20% UK VAT on catering and classroom related expenses. Such expenditure was officially 'VAT exempt.' In this case however, the London based university was nervous about co-operating, and seemed to expect our client to bear an excessive VAT charge.
Being aware that UK VAT laws legitimately allowed VAT exemptions to qualified, foreign-based educational institutions, Raj Shah, President of UVS contacted the London based tax firm Withersworldwide to seek the help of Mr. Graham Elliott a consultant in the international corporate tax team to strategize and enable the UVS client to get a refund of UK£ 69,000 that was erroneously charged.
With the sound technical advice of Mr. Elliott, and the persistence of UVS, the client was not only able to get a Credit Note of UK£ 69,000 from the London University, but all future billings will now be VAT free. Going forward, this exercise will create a recurring saving of the handsome sum of GBP£ 40,000 per annum for the US-based University client of UVS. The UVS "can-do attitude, and never give up if VAT laws and facts are on our side, confidence,” resulted in a permanent annual saving for the client.

SUCCESS STORY

UVS Educates Spanish Supplier on Local VAT Laws and Recovers $9,334 For Swiss Pharmaceutical Company

Not every supplier is savvy about their country’s VAT laws. When a Swiss pharmaceutical company submitted an invoice from its Spanish supplier for VAT refund, the Spanish VAT Authority rejected the claim on grounds that the supplier should not have charged VAT in the first place. The client handed over the case to UVS in 2016 with just one demand: “Get the refund.”
Team UVS took on the challenge, leveraging their Spanish speaking staff for communicating directly with the supplier in Spain. The task involved educating the supplier on local VAT laws and persuading him to make good our client’s loss, for which UVS also roped in a local Tax lawyer. The effort paid off and the supplier refunded erroneously charged VAT to the tune of €8,379 on a single invoice.