TOOLING VAT
What is Tooling VAT?
Most tooling VAT comes in the form of foreign vendor invoices which often incur substantial VAT leading to an impactful reclaim opportunity. VAT is charged when acquiring the components and machines needed for production such as fixtures, injection moulding gauges, cutting equipment and patterns. Typically the automotive and pharmaceutical industries incur the largest amounts of tooling VAT. Having a large amount of tooling VAT can be complicated when it comes time to report taxes. This is why it is important to consult with VAT experts who can make sure you meet your VAT obligation and get the best refund possible.
Scenarios in which VAT on Tooling is recoverable
Sampling and testing
Value added tax on the development of samples or models for testing purposes.
Import VAT on Warranty Parts
VAT on goods returned with manufacturing defects within the warranty period.
Outsourced manufacturing
VAT on the use of outsourced manufacturers in multiple countries to produce machinery parts.
Repair/Alteration post purchase
VAT on repairs of components, parts and machinery needed for the production of goods.
Production equipment
VAT on production components such as fixtures, gauges, injection moulding, die casts, cutting equipment and patterns.
Tooling Industry Experts
VAT IT has dedicated experts who understand the Tooling industry. This means we know where to look, how to find the VAT and what information is needed to submit a large VAT reclaim. Our relationships and network connects us directly to suppliers to get the original invoices and information required. VAT IT can help you avoid VAT liability and optimize your VAT refunds by using our state-of-the-art VAT return tool.
Need more information on Tooling VAT?
Download our Tooling VAT brochure to learn more.
