Oil & Gas company seek support in dispute resolution

Our Approach 

• Developed an interactive VAT Place of Supply tool that walks clients through the complex rules 
• Ensured that suppliers were correctly applying the VAT rules – or up the supply chain – to ensure that our clients apply the correct VAT treatment  
• Where the incorrect treatment had been applied, we provided a draft letter that could be sent to the supplier/customer outlining the relevant legislation and the appropriate treatment avoiding other instances escalating to require a dispute resolution
• Our review also highlighted a significant amount of foreign VAT which had not been recovered. 

The Outcome  

• The Place of Supply tool provided an audit trail of the decision making process which provided the central tax team with peace of mind around the process 
• The provision of the tool meant that as well as assisting now, we support our client’s VAT processes going forward 
• The letters setting out the relevant treatment saved our client time as they no longer had to repeatedly chase the unpaid invoices or deal with dispute 
• Identified additional VAT recoveries and VAT that had been incorrectly charged that could have been disallowed by HMRC