SimplyVAT Helps Secure a £25,000 Refund After An HMRC Audit

In 2024, Skudz LLC, a US-based ecommerce company engaged in cross-border trade faced a significant compliance challenge when HMRC initiated a VAT audit covering two quarters of trading. Skudz LLC purchases goods in the United Kingdom for export and sale in the United States, primarily through Amazon and their own website. The audit was triggered by a £25,000 VAT refund request, and HMRC required comprehensive documentation to validate both the refund and export sales amounting to £76,000. 

Without sufficient evidence, Skudz LLC risked: 

• Losing zero-rating on its export sales
• Rejection of the £25,000 refund

The stakes were high. In addition to missing out on the £25,000 refund, the business could have been required to pay VAT on its exports, if HMRC had decided that the exports were incorrectly zero-rated. 

Support with HMRC 

SimplyVAT worked closely with Skudz LLC throughout the audit, providing end-to-end support from HMRC’s first information request. The team: 

• Reviewed HMRC’s requests
• Helped the client gather and organise the required export documentation
• Compiled the evidence to show that the goods had been exported in line with UK VAT legislation
• Prepared the case for HMRC on Skudz LLC's behalf 

SimplyVAT also managed communications with HMRC throughout the investigation, ensuring the evidence submitted clearly demonstrated the validity of the export transactions and the client’s entitlement to the VAT repayment. This expert guidance enabled Skudz LLC to navigate the audit process with confidence, minimizing operational disruption and regulatory risk.

"SimplyVAT did a great job helping guide me and my team through the stressful experience of being audited. They helped me understand exactly what was needed and laid out a clear plan for getting everything resolved promptly and favorably. It was also incredibly helpful to have their assistance communicating with HMRC, particularly when it came to details and areas of the process that I didn't fully understand at first. Having their team there to guide us through the process made a stressful situation much easier to navigate."

- Jared Kmiecik, Skudz LLC

Refund Secured, Zero-Rate Protected 

The HMRC investigation began in August 2025 and concluded in December 2025. Just before Christmas, Skudz LLC received confirmation that HMRC had accepted the evidence supporting approximately £76,000 of exports. 

As a result: 

• The client was able to demonstrate to HMRC its compliance with UK VAT rules
• The zero-rated sales were protected, preventing additional VAT charges
• The VAT repayment claim was approved and a VAT refund of approximately £25,000 was authorised and paid to the business 

Tax Authority enquiries can be complex, time-consuming, and commercially sensitive, particularly when VAT repayments and export evidence are involved. SimplyVAT’s specialist support ensured Skudz LLC not only preserved its financial interests but also reinforced its commitment to UK VAT compliance, enabling ongoing growth in global markets.