dispute resolution

Oil & Gas company seek support in dispute resolution

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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