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Universal VAT Services (UVS)
- 1. Are You Leaving Moneyon the Table? 1
- 2. Raj Shah, President AProactive VAT Recovery Company 2
- 3. Raj Shah, President A Proactive VAT Recovery Company “SHOW YOU THE MONEY” 2
- 4. THREE THINGS..... What isVAT Which Countries refund VAT How can you get your $ back 3
- 5. What is ValueAdded 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 incertain 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
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- 9. Entities Pay SignificantVAT $s 7
- 10. Entities Pay SignificantVAT $s But fail to recover due to 7
- 11. Entities Pay SignificantVAT $s But fail to recover due to UNAWARENESS 7
- 12. Entities Pay SignificantVAT $s But fail to recover due to UNAWARENESS 7
- 13. VAT % Ratesfor 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 Isa 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 BeRefunded 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 BeRefunded 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
- 17. Sample: Hotel Invoice $320 refund on a single invoice 12
- 18. Sample: Exhibition Invoice $18,000 refund on a single invoice 13
- 19. Parts and ToolsInvoice $ 6,700 refund on a single invoice 16
- 20. Sample file ofAudit Trail 15
- 21. 3 Key DocumentsRequired 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
- 22. And a Letter of Authority Sample'of'Letter'Of'Authority'(UK)' if .... 17
- 23. Reclaim Filing SixMonths 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
- 24. Customs Duty 19
- 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 anexcellent 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 CompletingUPS 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 CompletingUPS 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
- 30. A Proactive VATRecovery Company 25
- 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 GlobalReach.... Turkey World HQ Atlanta India Malaysia Brazil(soon) Chile(soon) 28
- 34. With a teamof 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 asa 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 canUVS 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 infoon 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 knowhow 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
- 40.
Editor's Notes
- #2 This is the first slide we can have this up as people come into the room. SONG PLAYING\n
- #3 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
- #4 Three simple objectives in the first part of this presentation\nWHAT, WHICH and HOW.....\n\nSO WHAT IS VAT.............\n
- #5 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
- #6 \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
- #7 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
- #8 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
- #9 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
- #10 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
- #11 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
- #12 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
- #13 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
- #14 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
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