VAT Structuring

Engaging The Proactive Consultancy Group’s VAT structuring advisory service is a step towards improved VAT-efficient structures that support growth, transactions and long-term compliance.

We have extensive experience with organisations that undertake complex commercial, operational or investment activities so we are ideally placed to advise on building VAT structures that improve cash flow, reduce VAT leakage and support commercial objectives.

VAT is often considered too late in major transactions and commercial decision-making, and this results in inefficient structures that create irrecoverable VAT costs, increase compliance burdens and elevate risk unnecessarily.

For most growing organisations, particularly corporates and internationals, early VAT structuring can improve cash flow, reduce VAT leakage and support commercial objectives.

The Proactive Consultancy Group’s VAT structuring service involves a review of a company’s business, transaction and operational structures to inform design decisions that promote VAT efficiency while maintaining compliance.

A well-designed VAT structure reduces unnecessary VAT costs, maximises recovery opportunities and improves VAT cash flow while supporting commercial and strategic goals and minimising risk of exposure to VAT disputes and penalties.

Areas We Advise on in a VAT Structure Review

During a VAT structure review, our expert advisers will scrutinise:

• Corporate structures
• Transaction structuring
• Property structuring
• International structures
• Operational structures

Corporate Structures

Our review of corporate structures could uncover opportunities in group VAT registration opportunities and shared service structures. We will also advise on VAT arrangements for subsidiaries and branches, and holding companies.

Transaction Structuring

Our advisers will assess the effectiveness of VAT structures where acquisitions and disposals are concerned, and they can also advise on VAT in relation to mergers and reorganisations, asset transfers and business transfers.

Property Structuring

Our clients seek advice about VAT in relation to property acquisitions and disposals, commercial property portfolios and development projects. We can also make recommendations on building option to tax considerations into VAT structures.

International Structures

Clients with international operations seek our advice on UK VAT and how it interacts with cross-border supply chains, UK and overseas trading arrangements and import and export structures

We can also advise on multi-jurisdictional VAT considerations.

Operational Structures

As part of the VAT structuring service, we will analyse the efficiency of your organisation’s operations, including invoicing and billing models and intercompany transactions. Our analysis includes cost-sharing structures and procurement arrangements as they relate to VAT.

Our VAT Structuring Process

The Proactive Consultancy Group’s VAT structuring process consists of:

1. Assessment – an initial review of structuring options and benefits
2. Case validation – a clear recommendation and feasibility assessment
3. Engagement – an agreed strategy and implementation plan with no upfront cost
4. Delivery – implementation of VAT-efficient structures with appropriate governance and compliance framework
5. Fee only on success – our fee is based on realised savings, improved VAT recovery or reduced VAT exposure.

1. Assessment

The objective of the assessment step in The Proactive Consultancy Group’s VAT structuring service is to understand your organisation, its objectives and its current VAT position.

Our consultants will review your business structure to understand planned transactions or changes. They will identify areas of VAT cost, inefficiency or risk and assess potential opportunities to gain an initial view of structuring options and potential benefits.

2. Case Validation

Once we’ve assessed your VAT structures, we will validate your case by conducting detailed technical analysis to confirm whether there is a VAT structuring opportunity. This validation step will include a review of supporting documentation that will allow our consultants to evaluate commercial and operational implications and quantify potential value and risk reduction.

We can then provide you with a clear recommendation and feasibility assessment.

3. Engagement (No Upfront Cost)

At this stage, we can agree a success-based engagement model, with a strategy and implementation plan. There is no fee payable at this stage, and we aim to make a transparent commercial arrangement with a clearly defined scope and expected outcomes.

4. Delivery of our VAT Structuring Service

Working to the agreed scope, we will implement a VAT-efficient structure, with appropriate governance and compliance framework. This service includes detailed technical advice and we will liaise with HMRC as needed. We can support you with stakeholder engagement, and prepare documentation, continuing to support the project right through to implementation.

5. Fee Only on Success

Fees for our VAT structuring service are payable on successful outcome, and will be aligned with the value delivered by realised savings, improved VAT recovery or reduced VAT exposure. This commercially aligned approach ensures a shared focus on measurable results.

Companies that optimise their VAT structures find commercial and financial benefits, as well as improvements to their risk management.

Commercial Advantages

The commercial advantages of improving VAT structures include increased transaction certainty, greater flexibility for growth, enhanced diligence readiness and better support for investment and expansion plans.

Financial Advantages

The financial benefits include better VAT recovery rates, which result in reductions in losses from irrecoverable VAT. Companies with well-planned VAT structures usually find their cash flow is enhanced, and they may benefit from reduced transaction costs.

Risk Management Advantages

From a risk-management perspective, companies with optimised VAT structures have stronger compliance frameworks, reduced VAT exposure and more effective governance and controls. This allows them to have greater confidence when making major decisions.

Who is The Proactive Consultancy Group’s VAT Structuring Guidance Service for?

Our consultants are experienced at working with high-value companies to improve VAT efficiency, particularly those with significant VAT expenditure or with complex structures and operations. Other organisations that can benefit from VAT structuring advice include those about to undertake a major transaction.

Sectors We Work With

The Proactive Consultancy Group has strong links with these sectors:

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When Does VAT Structuring Add Value?

Our clients find our deep technical knowledge of VAT structuring advantageous ahead of acquisitions and mergers. There are opportunities to be found in VAT structuring during corporate reorganisations and group restructuring, as well as during major capital projects, property transactions and international expansion.

VAT restructuring with an eye to practical solutions aligned with business objectives can improve the efficiency of shared service models and investment and fund structures.