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| Company A Inc. from USA
exhibited at Farnborough International Airshow in the UK. Their stand costs,
hotel bills, lunches and dinners, car hire and petrol costs amount to
£57,881.73. All of these costs were subject to UK VAT at 17.5%. This
means that £8,620.68 out of the total amount was VAT and recoverable from
the UK tax authorities. BR VAT Reclaim Ltd reclaimed their VAT and six months
later their trade show cost had decreased to £50,554.15, saving Company A
£7,327.58, net of our commission. |
| Company B SAS from France
has a subsidiary company in the UK. The UK Company performs certain functions
on behalf of the parent company and invoices the parent company for such
services. Since the UK company is registered for VAT, their invoices contain
17.5% UK VAT. The recharged business cost amounts to an average of
£75,000 per year and includes £11,170.21 of VAT. After reclaiming
this VAT intercompany charges were reduced by £9,494.68, net of our
commission. |
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