VAT Case Studies

VAT Case Studies


Case 1:

Multinational Company Tracks VAT on Inter-Company Billings

A multinational company with operations in the US as well as in Europe has different subsidiaries that sell to each other, generating inter-company billings with VAT charges. EuroVAT analyzed the accounting data flow between the company and its U.S. subsidiaries and created internal reports and tracking processes that enabled the US subsidiaries to conveniently identify internal VAT charges of $10 million a year that is now being reclaimed.

Case 2:

One-stop VAT Department

A New York-based event management company and organizer of many worldwide conferences needed assistance in understanding the local EU VAT rules and reclaiming the VAT. EuroVAT functioned as the company’s “internal VAT department”, providing one-stop assistance and registration management for all the different countries. This saved the organizer both money and significant time from not having to deal with local tax authorities and experts in each country.

Case 3:

Drop shipping of goods within the European Union

In order for a North American Company to drop-ship goods within the EU, comply with European tax rules, and be able to reclaim VAT, it had to register for VAT in two different EU countries. EuroVAT was engaged by the company to manage the VAT registrations and filings, including providing on-hand continuous support, thus saving the company $5 million a year.

Case 4:

Travel and Entertainment reclaim

A Fortune 100 US company has 10,000 business trips to Europe each year. EuroVAT designed in-house traveler VAT reports, identified the relevant expense reports for VAT reclaim, and allowed for an efficient VAT reclaim application. This resulted in a VAT refund of $500,000 a year.

Case 5:

Import to Europe

A Los Angeles-based company imports goods to a warehouse in the Netherlands, and sells to customers both within and outside of the different EU countries. EuroVAT was contracted to manage this complicated VAT management and registration process. The company now can reclaim the $1 million paid in import VAT at the same time as they comply with the EU VAT rules

Case 6:

North American company rents equipment in Europe

A Boston-based company rented equipment for a tradeshow in Germany. The rental invoice from the German supplier included VAT charges. EuroVAT assisted the company in getting a credit directly from the vendor for the erroneously charged VAT. Their immediate savings were $30,000.