NEW YORK, Sept. 19, 2017 /PRNewswire/ -- Global VaTax, which specializes in VAT reclaim based in New York, today announced a partnership with the French company, TEVEA International. TEVEA International belongs to the largest VAT refund and compliance companies in France and has over thirty years experience in international VAT recovery and VAT compliance.
What is VAT? The United States has a sales tax system but many other countries have a VAT system. Value Added Tax (VAT) is a consumption tax, which ranges between 8 - 25%, that is levied on both goods and all services in most international countries. VAT first appeared in France in 1954 and by the late 1980s, 48 countries had adopted a VAT system. Today it is present in more than 150 countries and accounts for up to a fifth of total global tax revenue.
The national tax systems of Europe, UK, Canada, Japan, South Korea and Australia allow for a refund of VAT (tax) to most non-resident business entities worldwide. In most cases, U.S. companies are eligible for a VAT refund for business done internationally. Most U.S. companies are not aware of this law. Industry estimates suggest $20 billion in annual spend is left unclaimed.*
"As VAT reclaim and compliance has become more dynamic and complex, it is a natural progression that Global VaTax partner with TEVEA International. Global VaTax offers a propriety Cloud platform solution which plugs into any expense management software and TEVEA International offers an extensive VAT reclaim and compliance global network," said David Zulberg, managing partner at Global VaTax. "The synergy of services allows Global VaTax to capitalize on the largely untapped U.S. market while offering customers state of the art software and the fastest refunds in the business."
VAT recovery is a complex process and requires a detailed understanding of the processes and requirements in each country, in its specific foreign language. VAT rules and rates vary from country to country and expense type. The local tax authorities require that the application and the communication are done in their own language. 72% of the businesses surveyed by the Organization for Economic Co-Operation and Development found reclaim procedures difficult to navigate, and 20% were unable to recover any VAT expenses at all.* Global VaTax makes it convenient for a U.S. company to collect its VAT refund and manage its VAT registration. The partnership with TEVEA International further increases penetration in the international markets. Some clients include CBS Studios Inc., Lionsgate Entertainment, La Prairie, MCI, Savills, European Broadcasting Union and the Tennis Channel.
How difficult is it for the U.S. customer to start the process? The process for the client is as simple as allowing access to expense management software. VaTax Cloud takes over from there, calculating VAT for each expense type, implementing the various rates within each specific country. From invoice collection through the VAT reclaim process, with the money ultimately being transferred to the client's account - there is full visibility through every step of the process.
How much does it cost? There are no upfront fees of any sort. If the client does not get a refund, there are no fees. Global VaTax only keeps a percentage of the VAT reclaim. Zulberg adds, "There is no risk or additional cost for the client but the potential 8% - 25% refund on international expenses can add a very significant increase to the bottom line of any U.S. company."
How far back can the client receive a VAT refund? VAT refunds apply in most cases for up to 18 months back, in some cases as much as five years.
* Organisation for Economic Co-operation and Development, Survey 2016
SOURCE Global VaTax