VAT recovery has never looked this good. Discover some tips on VAT reclaim in the beauty industry in the link below.
We’re well aware that the VAT landscape doesn’t always look pretty. For the beauty industry especially, juggling industry-specific expenses and their VAT processes can be daunting. So much so that many organizations within the beauty industry rarely maximize their VAT potential. Considering the industry’s complex global supply chains and ever-changing VAT legislation, ensuring compliant and maximum VAT recovery is resource-intensive and exhausting.
So, how can businesses in the beauty industry increase their VAT potential without draining their resources? Here’s a look at pretty neat VAT reclaim hacks for businesses in the beauty industry.
1. Doubledown on expenses
And no, we don’t mean expanding the budget and spending on overdrive. Rather, doubledown and pinpoint the exact costs that are recoverable within your industry. One of the most common reasons that VAT savings slip through the cracks is simply due to the fact that most companies are unaware of their reclaim potential. Within the beauty industry, there are a variety of niche expenses that incur VAT which you could potentially recover. This includes VAT on tooling and molding costs, clinical testing costs, import VAT, marketing expenses, and international meetings, events and conventions. You just need to know where to look.
2. Consider your internal structure
Speaking of knowing where to look - who’s responsible for diving into the VAT management and reclaim processes on your side? Chances are that they’re pretty darn overwhelmed. To successfully administer VAT and maximize recoverable VAT potential, you need to ensure that your entire team understands their role and responsibilities and the impact they have on your VAT potential. Often, VAT opportunities can hide in the most unassuming places like expenses within your HR team, sales and R & D. Due to the fact that VAT processes rely on collaboration between various departments, it’s important to check your internal structure within your organization. This means being mindful of working with the right agents, your spending visibility, and implementing the correct invoicing instructions across the organization.
3. Partner up
Fortunately, you don’t have to navigate the intricacies of VAT alone. Instead of becoming overwhelmed and stuck in common pitfalls within the VAT process, tag the VAT IT team of experts into your corner so you can focus on growing your business while we focus on effortless, streamlined, and maximum VAT recovery.
At VAT IT, we understand that even considering the large reclaim opportunities, most businesses are primarily concerned with optimizing their processes and reducing their administrative load without compromising their compliance. However, that doesn’t mean you have to let the saving opportunity slip through the cracks. Why not (re)cover all aspects of your VAT needs in one centralized solution?
In the interim, we’ve created an in-depth guide on everything you need to know regarding VAT reclaim and processes in the beauty industry. This includes a look at common challenges, different types of VAT, common eligible expenses and how to navigate the VAT landscape while freeing up your time, money and people.