Global contracts and framework agreements
You are a global consulting firm and you have just signed a contract with the New York HQ of a major US bank. You will be providing a single supply of consulting services but in the course of your work you will be required to analyse risk management and business practices at all the branches of the bank worldwide. What VAT treatment will you employ?
If, on the other hand, the bank decides to use a “global framework agreement” under which each of its branches will separately specify the work that requires to be done at that location and each branch will issue separate work orders to your local offices, will the VAT treatment be any different?
Global contracts involve complex and contentious VAT issues and need careful consideration and analysis. RKG Consulting will be pleased to assist in counselling global companies regarding cross-border VAT issues.