Tax Alert to Companies Doing Business in the UK; Filing VAT Refund Applications Can Boost Bottom Line for 1998.SEATTLE--(BUSINESS WIRE)--July 15, 1998--Corporate VAT Management (CVM) issued a tax alert today advising companies that do business in the United Kingdom to file their annual value-added tax value-added tax (VAT), levy imposed on business at all levels of the manufacture and production of a good or service and based on the increase in price, or value, provided by each level. (VAT) refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies applications with the UK tax ministry by Labor Day Labor Day, holiday celebrated in the United States and Canada on the first Monday in September to honor the laborer. It was inaugurated by the Knights of Labor in 1882 and made a national holiday by the U.S. Congress in 1894. rather than waiting till the December 31 deadline. "The UK provides one of the best refund opportunities to US companies. The sooner you submit, the sooner your refund plows back into your operating budget Noun 1. operating budget - a budget for current expenses as distinct from financial transactions or permanent improvements budget items, operating cost, operating expense, overhead - the expense of maintaining property (e.g. . Waiting until the deadline may cause delays of up to nine months while submitting early can generate a return in as little as three months. First in, first out," said John Powell, President of Corporate VAT Management. "For companies with extensive travel to the UK, VAT reclaim can provide a big boost to the corporate bottom line." Companies can evaluate their UK VAT refund potential by analyzing the volume and nature of the expenses incurred. Business travel to the UK will generate $25-$40 in VAT refundable expenses per day per traveler. A single hotel invoice An itemized statement or written account of goods sent to a purchaser or consignee by a vendor that indicates the quantity and price of each piece of merchandise shipped. A consular invoice is one used in foreign trade. can often result in a refund of more than $100. Exhibiting at a single trade show will typically generate several thousand dollars of refundable VAT. CVM recommends companies start preparing their UK VAT refund application by following three steps. 1) Obtain a Proof of Entitlement An individual's right to receive a value or benefit provided by law. Commonly recognized entitlements are benefits, such as those provided by Social Security or Workers' Compensation. certificate (form 6166) from the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. (or your tax ministry if not a US company). This is required by the UK tax ministry as proof of a company's eligibility for VAT refunds. 2) Work with the accounts payable department, corporate travel agent, expense reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. provider, expense card processor, and T&E system provider to identify VAT Valuable invoices incurred between July 1, 1997, and June 30, 1998. Apply the 90/10 rule. Focus your VAT reclaim efforts on those expense categories that offer the greatest refund opportunities. 3) Photocopy all the original invoices for your records and stamp or indicate on the copy that "Originals are in use for VAT refunds." These stamped copies are valid for IRS purposes. Original invoices MUST accompany VAT refund applications. Companies can learn more about VAT reclaim and their refund opportunity by subscribing to CVM's bimonthly bi·month·ly adj. 1. Happening every two months. 2. Happening twice a month; semimonthly. adv. 1. Once every two months. 2. Twice a month; semimonthly. n. pl. newsletter VAT Refunds (free through Labor Day). CVM also offers a no-obligation evaluation copy of AUTO VAT(TM), a software system that fully automates the VAT recovery process in fifteen European countries and Canada. Windows(R)-based AUTO VAT guides the user through each stage of the VAT reclaim process so VAT can be easily recovered -- without becoming an international tax expert or hiring an outside firm. Founded in 1994, Corporate VAT Management is focused on providing technology solutions to help companies maximize their refund benefit while minimizing their refund effort. CVM, with headquarters in Seattle, is working with corporate T&E system providers, travel agents, accounting firms, and meeting planners to make VAT refunds an automatic part of business travel to Europe and Canada. For more information on CVM's products and services, visit its Web site at http://www.corporatevat.com or e-mail info@corporatevat.com. AUTO VAT is a trademark of Corporate VAT Management. Windows is a registered trademark of Microsoft Corporation (company) Microsoft Corporation - The biggest supplier of operating systems and other software for IBM PC compatibles. Software products include MS-DOS, Microsoft Windows, Windows NT, Microsoft Access, LAN Manager, MS Client, SQL Server, Open Data Base Connectivity (ODBC), MS Mail, .
CONTACT: Corporate VAT Management
Mark Kotzer, 206/292-0300
Fax: 206/292-0123
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