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VAT health check assisted client’s finance manager meet performance review criteria

Our VAT health check not only helped the client, but assisted the Finance Manager in meeting an annual performance review objective of ensuring that no VAT penalty is assessed by HMRC during the period of review.

The review was undertaken on a UK manufacturing business and highlighted a number of VAT risk areas, together with VAT opportunities.

In preparation of a forthcoming VAT inspection by HMRC, the Finance Manger ensured that the VAT risk areas were actioned and our detailed VAT report, with summary action plan, assisted as a pre-VAT audit checklist.

Consequently, the client received a clean VAT audit (i.e. no VAT assessment raised) and, hence, no VAT penalty, much to the delight of the Finance Manager.


Ensuring correct registration to allow VAT repayments

Our client’s main operations are in Austria. However, we ensured its associated UK legal entity registered for VAT with HMRC, even where all of its supplies were outside the scope of UK VAT.

The successful application for UK VAT registration allows our client to recover input VAT on its expenditure incurred in the UK and provide it with regular VAT repayments.


Avoiding potential overseas VAT registration issue

Our VAT advice ensured our local ‘small business’ client was not, unintentionally, caught by the new VAT place of supply rules in relation to ‘digital’ services provided to non-business customers residing in the EU.

From discussing the future plans of the business, we became aware of a potentially new service offering (i.e. sale of Apps) our client was intending to sell to private individuals overseas for a nominal value.

We alerted the client that such sales, even if nominal, could give a significant multi-country VAT registration issue.

Our timely advice allowed the client to fully consider its options and prevent the business from being unintentionally caught with a costly, time-consuming and difficult VAT administration and compliance burden.