Tax principles

Statement of Tax principles

Villeroy & Boch UK Limited is the UK subsidiary of the Villeroy & Boch Group. This document describes the tax principles of the Villeroy & Boch Group according to the requirements introduced by Schedule 19, Finance Act 2016, and has been adopted by the Board of Villeroy & Boch UK Limited for the Financial Year ended 31 December 2017.

1. Introduction

Villeroy & Boch is one of the world's leading premium brands for ceramic products. The family business, which was founded in 1748 and is headquartered in Mettlach/Germany, stands for innovation, tradition and exceptional style. As a renowned lifestyle brand, Villeroy & Boch offers products from the sectors Bathroom and Wellness and Tableware, and is active in 125 countries. 7,991 employees are working for the Villeroy & Boch Group worldwide.

Since its foundation in 1748, Villeroy & Boch has developed into an international lifestyle brand. Like very few other premium brands, Villeroy & Boch is deeply rooted in European culture. And, in the way that only a great brand can do, it has understood how to preserve its identity while still moving with the times. Villeroy & Boch produces innovative and stylish products to enhance people’s lives, provide continuous inspiration and open up new horizons for truly personalized interior design.

An effective system of compliance is an indispensable instrument of good corporate governance. Commercial success can only be attained on a sustained basis when there is compliance with the law, with our internal company policies, and with our underlying values. That is why compliance is so essential for Villeroy & Boch. Compliance is consistently put into practice by the Villeroy & Boch management board and is an integral component in the divisions as well as in the activities of the subsidiary companies. The Villeroy & Boch compliance activities are risk-oriented, i.e. compliance issues are evaluated and prioritized on the basis of a risk analysis. Compliance risks are also identified as part of an ongoing process of compliance risk reporting.

Corporate governance provides the foundations to build trust between the company and shareholders, journalists, customers, employees and the general public.

2. Governance

Villeroy & Boch commits to act responsibly, also in relation to all tax affairs, to fulfil compliance obligations, and to operate in accordance with all relevant laws and regulations. Furthermore, Villeroy & Boch’s economic contributions, of which taxes form a part, are important and the group aims to ensure that it pays the right amount of taxes and duties in each country in which it operates and complies with tax declaration obligations in each country.

Villeroy & Boch understands the value of reporting to stakeholders and endeavors to provide balanced communication of its tax affairs. As a good corporate citizen Villeroy & Boch considers taxes and duties as an important part of its social responsibility.

2.1. Tax planning

Villeroy & Boch aims to be efficient with its tax affairs and considers the intention of the tax law in its business activities. In addition, Villeroy & Boch structures its business activities in accordance with sound commercial and economic reasoning and does not engage in any tax avoidance schemes. Villeroy & Boch’s overall company strategy is aligned with the risk profile for tax planning. Furthermore, the enhancing of the visibility to cash flow and financial impact is part of the tax planning.

2.2. Tax risk management

Villeroy & Boch’s integration of global tax requirements will be in line with the group compliance culture and the Tax Compliance Management. Villeroy & Boch will manage tax risks in line with its group governance framework and procedures. Key risk areas are monitored, and material risks should be mitigated or minimized.

2.3. Tax Compliance

Villeroy & Boch is committed to observe all applicable tax laws, regulations, reporting and disclosure requirements, wherever there is a requirement to do so as a result of businesses presence and transactions, in line with our Code of Conduct.

All taxes and duties are paid and tax declarations are duly filed according to local laws and regulations in the countries where Villeroy & Boch operates.

2.4. Relationship with Tax Authorities

Villeroy & Boch aims to achieve and maintain respectful relationships with the tax authorities or any other relevant authority of the jurisdictions in which it operates.

Villeroy & Boch co-operates, communicates and corresponds with tax or other relevant authorities with a conduct based on honesty, fairness and integrity.

Furthermore, Villeroy & Boch encourages the establishing of tax administration capability, and the promotion of efficient, fair and balanced tax systems.

The visibility and governance in the end-to-end tax processes as well as the audit-ready documentation will be enabled and integrated with the compliance of Villeroy & Boch group.