MHS Aviation, a leading air charter company in Germany, were completing the foreign VAT reclaim procedure themselves. However, they realised that it was impossible to achieve successful VAT refunds by using in-house resources. This was due to a cumbersome and complicated (especially for aviation companies wishing to seek VAT as well as Mineral Oil Tax refunds) process that needed to be carried out with different VAT Authorities who demanded claim documentation in different languages. As a result, MHS Aviation missed on refund opportunities within countries that seemed too difficult to claim from. The claims they did make were also being rejected by VAT authorities because the documentation didn’t meet the criteria necessary for a successful refund.
VAT IT's solution
AVIAA is a mutual partner of VAT IT and MHS Aviation. Having heard of MHS Aviation’s difficulties with their rejected VAT refund claims, AVIAA introduced MHS Aviation to VAT IT. VAT IT were able to assist MHS Aviation counter-argue their
rejected claims as well as explore other jurisdictions where tax and excise duties were claimable. Through a detailed VAT
audit, VAT IT maximised MHS Aviation’s VAT potential allowing them to add greater savings to their bottom line.