In this issue, we would like to introduce a "Testimonial" from one of our customers, "Yaskawa Siemens Automation Drive Corporation".
THE COMPANY HAS A EUROPEAN VALUE-ADDED TAX NUMBER (VAT NUMBER), BUT BECAUSE THERE ARE CASES WHERE CUSTOMERS SUDDENLY CHANGE THE DELIVERY DESTINATION TO WITHIN EUROPE, WE HELD A SEMINAR ON EUROPEAN VAT IN SEPTEMBER 2011 IN ORDER TO IMPROVE THE KNOWLEDGE OF OUR SALES STAFF REGARDING EUROPEAN VAT.
Mr. Hiroaki Koda (Group Manager, Accounting Group)
OPTi (O): Could you tell us about your business?
Mr. Koda (Mr. K ): We are a joint venture company, in which Yaskawa Electric Corporation and Siemens AG of Germany each hold a 50% stake, and since our establishment in 1999 we have been providing machinery products specialized in industrial automation technology for various fields.
O: What kind of places are your products used in, for example?
K: For example, they are used in crane systems for port cargo handling and machinery for pulp and paper manufacturing. They are also used in large presses and other equipment used in the automotive and consumer electronics industries.
INCREASED DELIVERIES WITHIN EUROPE, REQUIRING EACH SALESPERSON TO HAVE KNOWLEDGE OF VAT
O: Please tell us why you decided to hold a VAT seminar at your company this time.
K: Since we are a joint venture with Siemens, we are expanding sales of Siemens products. In this connection, our business in Europe is gradually increasing.
NORMALLY, THERE IS NO PROBLEM WHEN WE SELL MACHINERY AND EQUIPMENT IN JAPAN WHOSE PRODUCTS ARE PURCHASED FROM OUR HEADQUARTERS IN GERMANY. HOWEVER, WE ARE SEEING AN INCREASING NUMBER OF CASES WHERE SIEMENS PRODUCTS ARE INVESTED IN AND DELIVERED DIRECTLY TO OUR CUSTOMERS' LOCAL SUBSIDIARIES (TRANSFORMER PLANTS). IN SUCH CASES, VAT ISSUES ARISE, AND I BELIEVE THAT THE RISK OF TAXATION CAN BE REDUCED BY ACQUIRING BASIC KNOWLEDGE OF VAT BY OUR SALES STAFF.
WE ALSO OFTEN HEAR THAT TAXATION IS BEING TIGHTENED IN EUROPE AGAINST INDIRECT TAXES, INCLUDING VAT. SINCE OUR GROUP COMPANIES ARE LISTED ON THE STOCK EXCHANGE, COMPLIANCE IS STRONGLY REQUIRED. THUS, FOR THE REASON OF "REDUCING TAX RISKS AND DEALING WITH COMPLIANCE," WE HAVE REQUESTED A SEMINAR TO GATHER RELATED DEPARTMENTS TO LEARN SYSTEMATICALLY AT ONCE.
O: If so, what were the most anticipated effects of this seminar?
K: Yes, that's right. I knew that I wanted to raise the awareness of each sales person about VAT.
WE ALSO WANTED THEM TO BE PROPERLY AWARE OF HOW THE VAT RELATIONSHIP WOULD CHANGE DEPENDING ON THE SCHEME THEY WERE RUNNING AND THE TERMS OF THE CONTRACT.
O: Do you think that the program has been as effective as expected?
K: (Looking at the questionnaire) I think we were able to give sales and purchasing departments that have not had much contact with VAT until now some awareness that "when doing business in Europe, you have to be careful about taxes called VAT. I also think that we have reached a level where we can make a preliminary judgment on how VAT-related matters will change depending on our own schemes and contract terms and conditions.
I may not have had that level of awareness before, but now that I have learned the contract terms and conditions that are in compliance, I think I will have a slightly higher level of awareness in future sales negotiations, such as "I should be careful about this," or "I should ask the accounting department about this initiative," which is a little different from before. I think I can now have a different and higher level of awareness in my future sales negotiations.
IF I HAD NOT TAKEN THIS OPPORTUNITY TO STUDY, I MIGHT HAVE HAD TO TAKE A USELESS VAT NUMBER IN ANOTHER COUNTRY IN ADDITION TO THE VAT NUMBER I AM CURRENTLY USING.
In this sense, I am glad I was able to study at the seminar.
O: By the way, could you tell us why you selected us this time?
K: We received proposals from several companies, but we appreciated the fact that OPTi was the most flexible and responsive. Other companies required several months of preparation time to get approval from the head office, and their costs were several times higher than Opti's, so they could not respond as flexibly as Opti. We also considered the fact that Opti was able to prepare materials that were tailored to our situation, and we chose Opti.
O: Finally, could you tell us about your company's business prospects for the future?
K: As our current mid-term plan, we need to expand sales of Siemens products more in the future. Among them, we will be developing our business in the area of large motors. In this case, rather than bringing machinery and equipment all the way to Japan, we will increase drop shipments by purchasing machinery within Europe and delivering it within Europe. In this sense, proper VAT treatment is necessary. I think we have cleared the first step in this regard with this seminar. I am sure that various cases will continue to come up in the future, and I look forward to consulting with you again on various matters.
| name of company | Yaskawa Siemens Automation Drives Corporation |
| head office | 9F Tokyo Fashion Town Building West Tower, 3-4-10 Ariake, Koto-ku, Tokyo |
| Business | Design, manufacture, sales and maintenance of industrial electromechanical equipment and systems |
| Number of Employees | 約280人 |
| capital stock | 2,125 million yen |
| representative director (i.e. someone chosen by the board of directors from among the directors to actually represent the company) | President Hiroyuki Ougi Vice President Wolfgang Büttner |
| Establishment | April 21, 1999 |
| Website | http://www.ysad.co.jp/ |