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VAT Advice

VAT Advice

VAT affects a business's cash flow and is a potential bottom line cost. Evolving case law, statute and HMRC guidance makes compliance a challenge.

VAT affects a business's cash flow and is a potential bottom line cost.

VAT represents a key factor in a business's cash flow and potentially a real bottom line cost. Constantly evolving case law, statute and HMRC guidance makes compliance a continuous challenge. Less than excellent house-keeping can result in penalties, damaged reputation and/or missed opportunities. In today's global economy where competition is fierce and cash flow management is of paramount importance, effectively managing both the risks and opportunities surrounding indirect tax is key.

What's on your Mind?

  • How to handle VAT Package Implementation from January 2010.
  • Ensuring efficient VAT structures to maximise cash flow.
  • Handling new cross tax penalty regime and Senior Accounting Officer Accountability.

Bringing you Peace of Mind

  • Whether you are looking to reduce costs or use VAT to achieve competitive advantage, KPMG can provide the tax technical insights and skills you need to realise your most important business ambitions.
  • We have developed a wide variety of offerings to improve cash flow and reduce costs, whilst focusing on your commercial objectives.
  • Ultimately our services will enable you to manage indirect taxes in an effective and pro-active way, helping you to reduce cost and mitigate compliance risk.

What's in it for you?

  • Cash flow enhancement.
  • VAT Efficient supply chain - optimising VAT cashflow and mitigating unnecessary VAT loss throughout the chain.
  • Ensures systems readiness to mitigate risk of financial penalties.
  • Input tax optimisation for partly exempt businesses.


  • Working Relationship with HMRC - we have a strong working relationship with HMRC through joint projects and secondments to help broaden our team's experience.
  • The bigger picture - we work in collaboration with our clients by organising ourselves by industry lines. This helps enable us to look at the bigger picture to help implement complete commercial strategies, rather than just VAT planning.
  • We pride ourselves in applying our technical and commercial knowledge to produce opportunities for businesses in an ever changing legal environment.

Case Study
Global Telecoms Group

Centrally co-ordinated multi-country team performing an operational overview of procurement procedures, supplier/customer contractual arrangements and VAT treatment of transactions. The team also investigates systems to assess the capability of ERP/SAP systems to process Indirect Tax transactions correctly.


  • new bad debt recovery process to quantify and maximise adjustments
  • processes to improve Indirect Tax recovery and eliminate Indirect Tax return errors
  • new purchase accounting routines leading to increased input Indirect Tax deduction


  • £23 million retrospective Indirect Tax refunds - cash injection
  • £7 million permanent Indirect Tax cash flow from enhanced accruals
  • £5 million permanent Indirect Tax cash flow from improved bad debt recovery

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