At UVS our mission is to MAXIMIZE "VAT Recovery" within the scope of the laws, while providing a low cost, efficient solution to all our clients.
Please visit us @
www.universalvatservices.com
Thank You
5. What is Value Added Tax?
A Sample 10% VAT, Foreign Country
Example
Farmer Baker Retailer Customer
Grain
Loaf Loaf
20c+2c 60c+6c $1+10c
Collects 2 6 10 =18
Government
Refunds(0) (2) (6)=(8)
Net 2 4 4 =10 4
6. In USA - Sales Tax
A Sample 10% Sales Tax
Farmer Baker Retailer Customer
Grain
Loaf Loaf
20c 60c $1+10c
Collects 10
Government
5
7. What happens in certain foreign transaction:
Buyer in One country & Seller in Another
Buyer
Seller
US Entity will have to pay VAT, but can
reclaim full or part of VAT from the foreign
tax authority - VAT Refund
6
13. VAT % Rates for Select Countries that Refund
25% 25%
21%
19.6% 20%
19%
18%
10% 10%
5%
Japan Austrl. S. Kor. Spain Germany France UK Italy Sweden Denmark
8
14. In Summary VAT
Is a Value Added Tax on Goods/
Services levied in many countries,
primarily European countries .
Can be as high as 25%
Is fully or partially refundable to
foreign entities
9
15. VAT Can Be Refunded on the following
Travel Expenses Costs Related to: Professional Fees
Hotels Seminar Legal
Car Rentals Conferences Acctg./Tax
Transportation Training Marktg/Adv.
Meals Trade Shows M&A
Banquet, Prod. Launch CSR/IR
etc etc etc
10
16. VAT Can Be Refunded on the following
IC Charges Many Others:
IT & Telecomm. Relocation
Shared Services Warranty Serv
Mgmt. Services Tooling works
Technical Fees Installation
Training, Private Aviation,
etc etc
11
21. 3 Key Documents Required to Recover VAT on your Corporate Expenses
1. Original Invoice 2. Proof of Payment 3. Certificate of US
Tax Residency
From foreign Check Copy
supplier
WIre Transfer
Indicating VAT Confirmation,
Rate, VAT Amount etc
and VAT #
Full Description of
product or services
provided
Fax not acceptable,
Org. invoice returned
with the Refund
16
23. Reclaim Filing Six Months after the
fiscal Year-End
UK:
Fiscal Year July-June
Deadline - by Dec 31
EU & Other Countries:
Fiscal Year Jan-Dec
Deadline - by Jun 30
18
25. Harmonized Tariff (Product) Code
A Harmonized Tariff Code is part of a coding system created by the World
Customs Organization (WCO). The system was introduced in 1988 and is also
called the “Harmonized System.”
The system uses a logical nomenclature method to categorize goods into
approximately 5,000 commodity groups.
More than 200 countries use the system to classify goods.
The Harmonized System is currently used in more than 98% of international
trade.
20
26. UPS has an excellent
on-line tool....
wwwapps.ups.com/tradeability
To find Harmonized
Product Codes and
Estimate Landed Costs,
including duties, taxes
and freight
21
27. Customs Duty
It is not recoverable
Amount depends on several factors:
Product Code
Tax Treaty between the importer/exporter countries
Quotas
Country of Origin, etc
If Customs Duty is overpaid due to incorrect Product
Harmonized Code, it will be impossible to obtain a refund later
Sever penalty for using incorrect Product Harmonized Code to
lower the Customs Duty
22
28. Tips on Completing UPS Worldwide Services Waybill:
If goods are shipped for resell
and sold to reseller, it maybe a
good idea to shift the burden of
paying VAT to the
Importer(Receiver) with prior
arrangement.
Importer/Receiver will be able to
claim VAT paid as “input
credit” in the VAT returns that
they file
Note:
For value < $15 there is no VAT
Section 2(B)
Indicate VAT no.
of the Receiver
SECTION 3(R):
Check Receiver (R) to indicate Receiver (Importer)
is liable to pay VAT 23
29. Tips on Completing UPS Worldwide Services Waybill:
section 5:
“Declared Value of
Shipments for Customs
Only”
✓For Documents,
Samples, Brochures,
Marketing Materials put
$1 as a token value.
✓For Warranty items,
R&D Materials, Returns
or any other items not for
“resale” put $1 as a token
value.
✓For intercompany
packages put “N/CV” for
no commercial value
✓Items for personal use
or business uses like
supplies, business cards,
other small value items
should have no VAT
SECTION 7:
insert correct
harmonized tariff code 24
31. Our Mission is....
to maximize “VAT Recovery”
within the scope of laws, while
providing low cost and hassle
free solutions to all our clients
26
32. Our Clients Include ...
BMW MeadWestvaco
Procter & Gamble Dow Corning Corp.
JCPenny Rockwell Collins
American Electric
Power ..and Many Others
27
33. We have Global Reach....
Turkey
World HQ
Atlanta
India
Malaysia
Brazil(soon)
Chile(soon)
28
34. With a team of International Tax Experts....
Austria Dr. Christian Zwach Tax Attorney
Australia Peter Dixon Tax Consultant
France Ms. Yu XU TMF Vat Serv.
Germany Ursula Tipps Tax Attorney
Italy Inger-Johanne Hasle TBS
Japan Kasuko Mushiake Tax Consultant
Norway/Denmark PWC International Tax Firm
S. Korea Robert Lee Korean CPA
Switzerland Marcel Egli Centratrust
U.K. Kathleen McLaughlin Ret. Customs/Excise Mgr.
29
35. We have as a result of our....
Global reach with many years of proven experience and,
Very professional and ethical approach
Consistently successfully delivered millions of $ of VAT
reclaims for our clients...
Some of the World’s Most Trusted Companies have chosen
UVS for Long-Term VAT reclaim success
30
36. So what can UVS do for your Company
Maximize VAT recovery within the scope of laws
Provide a turn-key solution to manage your
international registration/de-registration for VAT
Provide assistance to optimize internal processes to
ensure maximum VAT recovery
All of this on a contingent fee basis....in other words we
make money only on successful VAT recovery to you
31
37. For more info on UVS Please Visit our
Website: WWW.UNIVERSALVATSERVICES.COM
32
38. In Summary
VAT is the Tax that Pays Back on
qualified transactions
Recovery is a permanent opportunity,
not a one time deal
VAT that is not recovered is
Money left on the Table
33
39. Please let us
know how we
can help you Raj Shah, President
Universal VAT Services (UVS)
take your 2771 Lawrenceville Hwy
Suite 110
VAT money Decatur, GA 30033 USA
Off the table Phone: 770 496 0424
Fax: 770 496 0178
& put it back Mobile: 404 395 8841
Email: rajshah@universalvatservices.com
in YOUR
POCKET
34
This is the first slide we can have this up as people come into the room. SONG PLAYING\n
Next, you can introduce your self here.......My name is Raj Shah, Founder and President of a PROACTIVE VAT RECOVERY COMPANY, UVS or Universal Vat Services. \n\nI am here to SHOW YOU THE MONEY, which rightfully belongs to your entity.\n
Three simple objectives in the first part of this presentation\nWHAT, WHICH and HOW.....\n\nSO WHAT IS VAT.............\n
Lets take a very simple example of a foreign country with 10% VAT rate and in this example we will talk about a loaf of bread\n\nSo following 4 entities are here....A farmer, a baker, a retailer and the final customer who buys this loaf of bread from the retailer\n\nFarmer sells grain to the baker, baker make the loaf, sells to a retailer and a customer buys from the retailer\n\nFramer sells grain to the baker for 20cents and since this is a 10% VAT country, he collected 20+2 cents from the baker, Baker sells to retailer for 60cents plus 6 cents as VAT and finally the retailer sells to end customer with a price of $1 and collects 10cents as VAT\n\nNow there is one another BIG FAT entity called the GOVERNMENT Tax Authority to which these VAT cents gets passed on by these various entities\n\nSo the Govt collects 2+6+10 or eighteen cents which is more than10% (18% to be exact) \n\nBut in a VAT tax system, Govt will refund tax to entities who have previously already paid VAT in a value chain\n\nSo...Baker has already paid 2 cents when be bought grain, so he is refunded 2, Now the net amount paid by farmer is 2, baker is 4 so 6cents are already collected as VAT so when the retailer pays 10cents he is now refunded 6. so Govt in the end collects 10cents, which ultimately is borne by the Customer since he paid a total of 1$ + 10cents.\n\nSO THIS IS VAT, Tax is Added at each value creation or value add stage.......... so its called a VALUE ADDED TAX \n\n\n\n
\nNow the same example in this country is very simple.....Govt does not collect tax at each value creation but only in the end, so even though the tax amount is same. Collection mechanism is different and much simpler.\n\nIn simple terms VAT is just a form of Glorified Sales Tax, which by the way in some countries is called GST not for Glorified Sales Tax but as General Sales Tax\n\nSo VAT does have different names is certain countries but essentially its local or national sales tax\n
So what happens if the buyer and seller are in different countries......lets take an example of a buyer of certain goods and services is in USA but the seller is in UK.\n\nThe same tax collection system works but in this Instance.....the US entity maybe able to reclaim the VAT from the foreign tax authority.\n\nSO THATS HOW VAT REFUND or VAT Recovery or VAT Reclaim comes into the picture.\n\nONE IMPORTANT NOTE - IF IN THIS EXAMPLE IF THE BUYER AND SELLER BOTH are in UK, there is no refund to the Buyer.\n
IN this world of international trade and globalized economy, entities end up paying.....HUGH HUGH amounts of money to foreign tax authorities....\nBUT, sadly .....fail to recover due to one simple but reason, and that is &#x201C;UNAWARENESS&#x201D;\n\nNon recovery is even bigger crime in this tough global economic times. Every NIckel and DIme counts. The money can be wisely spent on many other business needs as oppose to LEAVING IT ON THE TABLE for a foreign tax authority!!\n
IN this world of international trade and globalized economy, entities end up paying.....HUGH HUGH amounts of money to foreign tax authorities....\nBUT, sadly .....fail to recover due to one simple but reason, and that is &#x201C;UNAWARENESS&#x201D;\n\nNon recovery is even bigger crime in this tough global economic times. Every NIckel and DIme counts. The money can be wisely spent on many other business needs as oppose to LEAVING IT ON THE TABLE for a foreign tax authority!!\n
IN this world of international trade and globalized economy, entities end up paying.....HUGH HUGH amounts of money to foreign tax authorities....\nBUT, sadly .....fail to recover due to one simple but reason, and that is &#x201C;UNAWARENESS&#x201D;\n\nNon recovery is even bigger crime in this tough global economic times. Every NIckel and DIme counts. The money can be wisely spent on many other business needs as oppose to LEAVING IT ON THE TABLE for a foreign tax authority!!\n
IN this world of international trade and globalized economy, entities end up paying.....HUGH HUGH amounts of money to foreign tax authorities....\nBUT, sadly .....fail to recover due to one simple but reason, and that is &#x201C;UNAWARENESS&#x201D;\n\nNon recovery is even bigger crime in this tough global economic times. Every NIckel and DIme counts. The money can be wisely spent on many other business needs as oppose to LEAVING IT ON THE TABLE for a foreign tax authority!!\n
IN this world of international trade and globalized economy, entities end up paying.....HUGH HUGH amounts of money to foreign tax authorities....\nBUT, sadly .....fail to recover due to one simple but reason, and that is &#x201C;UNAWARENESS&#x201D;\n\nNon recovery is even bigger crime in this tough global economic times. Every NIckel and DIme counts. The money can be wisely spent on many other business needs as oppose to LEAVING IT ON THE TABLE for a foreign tax authority!!\n
SO what are the VAT rates in certain countries that DO REFUND.....Its as low as 5% in Japan, 10% in Australia.... but as high as 25% as you can see in this chart.\n\nSO we are not talking just nickels and dimes it could be a quarter of your total cost. So could potentially add up to thousands or millions of $, depending on the purchases an entity makes from certain overseas companies.\n\n
One important note I would like to add is even though currently VAT or VAT type tax/refund system is primarily in Europe, Canada and few countries in Asia Pacific........\n\nMore and more countries are looking at introducing VAT to collect incremental revenue on everything, and hopefully will also introduce VAT refunds to foreign entities, just to stay competitive and attract foreign business/investments in their country.\n