How CKH got Millions in VAT refunds recovered for client

CKH Group Success Story: €33.5 Million in VAT Refunds Recovered Through German Tax Law Expertise

At CKH Group, our strength lies not just in technical skill, but in persistence, creative problem-solving, and our dedication to client outcomes. Tarlan Ismayilov, compliance manager and a key member of CKH Group’s Statutory Compliance team, demonstrated all of these qualities in two high-impact VAT recovery cases that resulted in a combined €33.5 million in refunds from German tax authorities to one of our biggest clients.

This CKH success story highlights the firm’s cross-border capabilities and deep understanding of European tax law, as well as ability to work with huge multinational companies with complex needs.

Case 1: €29.5 Million Import VAT Refund – Streamlining a Stalled Process

When Tarlan joined CKH Group in January 2023, our reputable client in the consumer goods industry had already been VAT-registered in Germany due to its warehousing operations. However, a major issue had gone unnoticed: for a period of 9 months, all import VAT paid at customs was stuck- millions of euros outlaid, but no refunds returned.

Tarlan immediately took initiative. Partnering with colleague Leyla Hasanova, he led a methodical review to gather missing customs declarations, import invoices, and other documentation gaps. In collaboration with the client’s logistics partner, and coordinating with a big four firm for additional compliance, he restructured the VAT return approach, ensuring import VAT was properly declared going forward.

The results were staggering. By mid-2023, Germany’s tax authority began issuing refunds, eventually returning €29.5 million—all without triggering an audit or even a questionnaire. For a case of this size in Germany, such a smooth resolution is virtually unheard of, and is a testament to Tarlan’s background in German law.

“For me this wasn’t just about the numbers, it was about persistence. At first it looked impossible. Missing data, blocked refunds, complex rules. But step by step, we turned it in into a success,” said Tarlan.

Case 2: €4.06 Million VAT Refund – Resolving a PE Misunderstanding with Legal Precision

The second case centered on €4.06 million in blocked refunds caused by incorrectly issued service invoices that included German VAT. The problem: The client didn’t have a permanent establishment (PE) in Germany, and under German law, a warehouse alone doesn’t meet PE criteria.

Tarlan spotted the issue and raised it repeatedly with the client’s contact. After six months of inaction, he escalated the matter. He brought it to CKH Group’s CEO and reached out directly to senior contacts on the client side, eventually securing a high-stakes meeting with seven members of the client’s logistics’ team, including the CEO, finance managers, tax advisors, and auditors.

Tarlan was more than prepared- in German, he explained the legal nuances of PE status, drawing on his studies and professional experience in Germany. His clarity and legal grounding convinced the client to apply for a withdrawal declaration with the tax authorities. The blocked amount was refunded in full, again with no audit, no questionnaire.

“The remarkable part was that there were no questionnaires and no audits, which is almost unheard of in Germany. For even small amounts, the tax authorities are quick to open an audit. But my background is in German law- I studied and worked here in Germany,” Tarlan explained.

Results That Speak for Themselves

Together, these two cases recovered a total of €33.5 million for the client. But beyond the numbers, the story showcases the qualities that set CKH Group, and particularly Tarlan’s Ismayilov, apart:

• Proactive identification of blocked and unnoticed funds
• Relentless follow-through, even in the face of client delays
• Cross-functional collaboration with logistics teams, advisors, and client stakeholders
• Legal fluency and tax expertise applied with precision

CKH Group is proud of the impact Tarlan and his team made. Their efforts exemplify our mission: to be a trusted CPA partner that treats your business like it’s our own. And this win is an example of our constant persistence and proactive approach to save our clients money.

For more on CKH Group’s tax and accounting capabilities, visit our Tax Services or Accounting Services page or Contact Us to connect with a CKH Group advisor today. You can also call us at 1-770-495-9077 or email us at [email protected].

The above article only intends to provide general financial information and is based on open-source facts, it is not designed to provide specific advice or recommendations for any individual. It does not give personalized tax, financial, or other business and professional advice. Before taking any form of action, you should consult a financial professional who understands your particular situation. CKH Group will not be held liable for any harm/errors/claims arising from the articles. Whilst every effort has been taken to ensure the accuracy of the contents, we will not be held accountable for any changes that are beyond our control.