VAT and indirect taxes

Indirect taxes include VAT, customs and excise duties and energy and environment taxation. These taxes are ruled by complex regulations and are often changing. Protecting your company’s profitability means also managing your indirect taxes smartly.

Management of indirect taxes impact on most of the areas of a business. These impacts and our related services are, summarised below.

Cash recovery

To make sure you are paying the correct VAT and recovering any overpaid or incorrectly charged VAT, it is important to make a regular review of the VAT treatment of the transactions you have carried out.

Our specialist indirect tax team is ready to work with you in order to handle this matter.

Improve your margins

Gaining control over your indirect tax liabilities and the related cash flows can be a challenge. So we have developed a number of solutions and tools to help you to optimise your indirect tax cash flows and improve your margins while staying compliant with the rules.

Transaction support and structuring

You will be able to save money and avoid unexpected costs by analysing the indirect tax implications of your transactions, which might include, for example, M&A or the sale of a non-core businesses. These transactions, too, have material indirect tax implications which parties need to be aware of.

Technology, management processes and VAT controls

Our team of specialists can give you the support you need to carry out accounting recordings of your commercial transactions in your ERP management system correctly and efficiently.

This work may involve adapting the ERP system to handle indirect taxes effectively and efficiently, while ensuring that it is updated when necessary.

The team also has solid experience in electronic invoicing and digital storage.

Public sector

We help public bodies which are liable to tax in their VAT affairs.

Specifically, by carefully examining the work they do, we help public bodies to assess, first of all, whether they can be considered VAT taxpayers (in that they carry out business activities) in the light of the activities or transactions that they carry out, when supplying services and/or goods. We therefore help them in assessing whether or not they operate in compliance with VAT rules, thereby seeing that they duly recover the input VAT.

VAT on financial services

The European Union Court of Justice has issued a number of rulings regarding the VAT treatment of financial services and the deduction of input VAT on purchases of goods and services made by financial entities. This means that transactions need to be continually checked and analysed in order not to miss opportunities, on one hand, and not to commit infringements and pay the resulting penalties, on the other hand. Our specialist VAT and financial services team is ready to support you by examining the VAT treatment of the services you provide or receive.

Resolution of indirect tax disputes

If not correctly handled, an inspection by or a dispute with the Revenue Agency can take up much of your time, leaving you with unwanted costs in the shape of penalties and interest.

Our indirect taxes litigation team is ready to work with you to resolve potential disputes and prevent tax litigations. We can help you in the investigation phase and in assisting in those settlement procedure that can bring the controversy to an end.

Indirect tax litigation

We work closely with the Tax litigation to help you to handle and resolve any indirect tax dispute before Tax Courts, the Supreme Court and the European Union Court of Justice.

Customs and excise duties

We help you to assess and design internal control procedures for customs and excise duty obligations in order to have full control over this area of activity. It is important to monitor these duties closely in order to avoid very high penalties and give you commercial advantages. This work extends to the optimisation of customs procedures and also includes assistance in obtaining AEO certification.

Contact us

Luca Lavazza

Tax Partner, PwC TLS

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