Does VAT rank as one of your top cost items?
Financial institutions are no different to other businesses in that they have to deal with VAT. The difference however lies in the fact that the VAT paid by financial institutions is largely a cost item. This is because financial institutions provide VAT exempt services and VAT attributable to exempt activities cannot be refunded. This means that VAT ranks as one of the top 5 cost items for financial institutions. At a time when controlling costs is high on the agenda, it is important that financial institutions actively manage their VAT burden. Moreover, it is important to ensure that their VAT position is in line with tax legislation and that it is also socially responsible.
Time and again it has been proven how invaluable knowledge of the sector is in reaching an efficient VAT position that is in line with legislation. Working closely with IT specialists is also essential to ensure that the VAT systems and processes are set up in such a way that the VAT position can be efficiently managed. The advisors of Meijburg & Co’s Indirect Tax Financial Services group have extensive experience in identifying the VAT risks confronting financial institutions, but also the VAT opportunities available to them. They work daily with this sector and would be pleased to help you.
If you would like more information on the VAT position of financial institutions in general, please click here to download our fact sheet ‘VAT in the financial sector’. If you would like to know more about the VAT position of specific areas within the financial sector, please click on one of the following links:
- VAT and Banking
- VAT and Insurance
- VAT and Investment management
- VAT and Payment services
If you would like to read more about our general services provided to clients in the financial sector, please click here.