VAT
We have extensive experience across the range of indirect taxes,
including VAT and customs
duties.
Transactional VAT
VAT is often perceived as merely a cash-flow
cost for businesses – its cost can be recovered or passed on to the
ultimate consumer. However, VAT can become an absolute cost, and
this is particularly as regards businesses in the finance or
insurance sector.
Anything done for a consideration or price is
a supply for VAT purposes. Accordingly, VAT must be taken into
account in every commercial transaction. A contract that is
silent on VAT generally means that the contract price is
VAT-inclusive, which can leave the supplier unexpectedly out of
pocket. Put simply: ignoring VAT can turn a good deal into a bad
deal.
The VAT analysis of a commercial arrangement
depends on the exact facts and circumstances. VAT advisers need to
understand the transaction, so that accurate and commercial advice
can be provided. By working closely with our corporate colleagues,
we ensure that the VAT costs and risks are materially reduced.
Our experience includes advising in relation
to the VAT aspects of transactions, such as the acquisition and
disposal of business assets, and on structures that mitigate
VAT.
Our work has become increasingly
international, where VAT can be particularly complex. We are able
to assist our clients with multi-jurisdictional VAT and sales taxes
advice on all kinds of international arrangements.
We do not operate in isolation. We work
closely with our clients and with our colleagues across the firm's
specialist sectors to ensure that we understand the commercial
objectives, that we implement them efficiently, from a VAT
perspective, and that the documents address VAT issues correctly
and consistently.
Because we have an experienced and specialist
contentious VAT team, we are able not just to advise on technical
VAT treatment, but also on how HMRC are likely to view matters,
what the treatment of a matter is likely to be and how it can be
optimised.
Contentious VAT
We have wide experience of advising on
enquiries by HMRC and disputes relating to the indirect tax
treatment of transactions and structures.
Examples of our recent experience can be found
here.