VAT Optimization

Entities who carry out exempt transactions not liable to VAT, such as institutions supplying financial services or services related to healthcare or education, municipalities, etc., usually do not recover all the VAT that they are indeed entitled to.

In this context, we review the procedures adopted by such entities regarding the recovery of their input VAT, which involves reviewing the direct allocation and also the prorata methods.

Also, such entities usually face complex issues associated with the VAT treatment of their transactions and it often happens that VAT is assessed when in fact it is undue. In reviewing the VAT treatment, we can identify such cases and correct them, while generating potential gains for the company.

Our work allows our clients to recover VAT for the past and also generate savings for the future. 

Service steps

  • Identification of the areas of opportunity/optimization;
  • Review of the VAT treatment of certain transactions;
  • Review of the procedures regarding the recovery of VAT (prorata and direct allocation methods);
  • Computation and recovery of the VAT for the past;
  • Implementation of new procedures for the future.