Market leading insight for tax experts
View online issue

VAT and cross-border contracts

Speed read

Global contracts continue to be popular commercially but equally continue to create irrecoverable VAT costs and significant worldwide compliance burdens for businesses inadvertently signing up to certain contractual structures. These typically involve a master agreement being signed, eg, between the US entities of a supplier and a customer, with the US supplier subcontracting to its global subsidiaries. The US customer onward supplies to its worldwide subsidiaries. If the contract is for goods, eg, IT hardware, both US entities are dragged into the VAT net in multiple locations or irrecoverable VAT costs arise which can significantly impact profitability and increase costs.

If you or your firm subscribes to Taxjournal.com, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
EDITOR'S PICKstar
Top