Oil & Gas company seek support in dispute resolution
Case Study2nd Sep 2021
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Our Client
An Oil & Gas services company required assistance with a dispute resolution for one of their main customers. The client’s customer was refusing to pay the sales invoices whilst the VAT treatment was in dispute.
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
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