The Finance department of a German manufacturer of automotive components wanted to identify potential cash savings within the accounting process for three German entities. TALA Consult performed an analysis of transactions concerning the last five fiscal years. The project scope was to identify non-reclaimed input VAT and duplicate payments. In total TALA Consult audited more than 3 million transactions.
When conducting the project, a tax risk management module was included in order to control in parallel the correct application of output VAT regulations in the current VAT assessment process. The project led to more than 435,000 EUR of extra cash (145,000 EUR of non-reclaimed input VAT credits and 290,000 EUR of duplicate payments). Thanks to this positive result, the client re-invested part of the savings to finance an additional consultancy project with TALA Consult in the area of Process Performance optimization which brought sustainable improvements in the company’s efficiency.