How one WAY2VAT customer reclaims VAT on shipping expenses
When using a DDP “Delivered duty paid” business model, the client bears the risks and costs of delivery of goods, including all landing fees such as transportation, import tax, VAT, customs fees and other taxes.
One of our clients is a leading supplier of Advanced Driver Assist Systems (ADAS), shipping millions of hardware units to the largest car manufacturers around the world using DDP. The client was paying taxes on shipment but had no system for VAT reclaim in place.
This client’s vision-safety technology makes our roads safer, reduces traffic congestion and saves lives, so we felt especially motivated to help!
How do they use WAY2VAT? It’s as simple as 1-2-3.
- The client sends invoices and documentation related to every DDP shipment to the WAY2VAT team.
- The team confirms that claims are correctly submitted, and compiles all additional documentation (purchase orders, registration, etc.) needed for the claim.
- Documentation is uploaded to the WAY2VAT system and VAT refund is automatic.
As a result of implementing WAY2VAT, the client enjoys almost $420,000 in VAT returns every year. By automating the procedure, the client saves both time and manpower costs, and is confident in their monitoring of shipping expenses.
Want to learn more about how we can help your business? Contact us!