- The fashion and textile industry faces significant VAT leakage due to rapid trends and global supply chains.
- Businesses often miss out on reclaiming VAT because it is viewed as a compliance obligation rather than a cash flow opportunity.
- The article discusses how the fashion sector can uncover hidden VAT savings and improve cash flow through proactive tax management.
- The international nature of the fashion business complicates VAT management, with finance departments often lacking dedicated VAT specialists.
- Five core areas of VAT leakage in the fashion sector are identified, including fashion weeks, campaign shoots, and global productions.
- VAT charges on expenses like flights, hotels, and equipment during international events may be reclaimable if they meet local VAT laws.
- Reclaiming foreign VAT requires understanding jurisdictional rules and submitting proper documentation, which can be managed by VAT specialists.
- International sampling trips involve small purchases that collectively represent significant Vatable spend, often overlooked in expense reports.
Source: vatit.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
