Medical Meetings & Events: Who’s responsible for identifying VAT

As business calendars start filling up with upcoming medical meetings, events, and international congresses, it’s hard not to notice the accompanying expenses. Although a large portion of event spending can be attributed to business growth and stakeholder engagement expenditures, it still doesn’t justify disregarding the financial value of successful hidden VAT reclaim. 

The hidden VAT potential in Medical Meetings and Events

The hidden VAT potential within Medical Meetings and Events is one of the most significant financial resources Pharma companies can tap into. In fact, up to 12% of all congress spending can be attributed to reclaimable VAT. Yet, many organizations leave it on the table. Even if they can uncover the reclaimable costs, the process is often filled with challenges and complexities hindering recovery. 

In our previous webinar, we discussed how life science organizations could uncover hidden VAT opportunities that still need to be recovered due to a lack of visibility, awareness, or complexities surrounding the reclaim process. However, knowing where to look only gets you up until a certain point. To successfully implement organizational best practices, there needs to be clear transparency about who’s responsible for identifying VAT exposure and recovery in the first place. 

Who is responsible for identifying VAT exposure and recovery? 

When it comes to the complexities of Medical Meetings and Events, many sizable pharmaceutical industry organizations opt-in for the convenience and cost-effectiveness of third-party event suppliers. However, when it comes to VAT recovery, using event suppliers causes a significant roadblock. 

Employing agencies, who often work under the Tour Operators' Margin Scheme (TOMS), results in most costs incurred reflecting as indirect costs, which has a critical effect on the VAT return process. Where the TOMS applies, organizations cannot recover input VAT on these ‘indirect’ costs. 

So, what’s the alternative? 

Business owners, congress and event managers, and tax managers, who are closely involved in the recovery process, all play a critical role in the recovery process. In our upcoming webinar, VAT IT and GCO are deep diving into core principles that internal stakeholders need to understand within their respective roles and responsibilities regarding hidden VAT recovery.

In addition, we’re looking at how internal functions can support each other to maximize VAT recovery outcomes and how each one of these key players can fine-tune the recovery process to drive better transparency, clarity, spend visibility, data integrity, and compliance. 

Join our upcoming webinar and maximize your savings

Create awareness and better understanding from each functional role perspective by joining our forthcoming VAT IT and GCO virtual webinar on 22 February 2023. Learn more about the most critical factors as to why most organizations are hindered from maximizing their VAT recovery and where to drive change to improve and maximize savings.

Book your seat here