Romania has the largest so-called “VAT gap,” the difference between actual and expected VAT revenues, in the European Union. According to a 2019 European Commission study, 36% of Romania’s VAT revenues, EUR 6.41 billion, went missing in 2017. Romania’s VAT gap reached 48% in 2011, following a sharp increase in the standard VAT rate from […]
The deadline for the electronic invoicing mandate in India is rapidly approaching, and if multinationals aren’t careful, compliance issues could catch some SAP customers by surprise. On April 1, India will begin enforcing its own unique version of mandatory e-invoicing for all but the smallest businesses in the country, although the Indian tax administration has […]
This January, Sovos ShipCompliant released the 2020 Direct-to-Consumer (DtC) Wine Shipping Report with our partner, Wines Vines Analytics. The year 2020 marks the 10th annual DtC report, which features exclusive data and insights on the state of the industry not tracked or reported on anywhere else. With wine shipments to consumers reaching a record $3.2 […]
Controls to close the VAT gap and combat VAT fraud The VAT gap for Europe remains around €137 billion every year, according to the latest report from the European Commission. This represents a loss of 11.2% of the expected VAT revenue for the region. The largest gaps were in Romania at 37.89%, Greece 33.6%, and […]
As part of the recently updated “new NAFTA,” or USMCA, Mexico is enticing companies to move operations into its maquiladora zone of factories along the US border. Major benefits of relocation include exemptions from value-added tax (VAT) and other taxes for qualifying manufacturers, along with a VAT rate reduced by half applied to local transactions […]
The Ministry of Finance and the State Taxation Administration are pressing ahead with China’s VAT reform having issued a Consultation Draft of the VAT law of the People’s Republic of China on 27 November 2019. It called for feedback from the public and other interested stakeholders. This draft law aims to consolidate the reforms and […]
2020 marks 100 years since the start of the Prohibition Era (the Volstead Act, which implemented the 18th Amendment, and prohibited the sale and production of any product with more than 0.5 percent ABV, came into effect on January 17, 1920). As such, there has been a lot of coverage in the media of this […]
The IRS commissioner Chuck Rettig issued the agency’s FY19 updates last month, which included updates on compliance and education initiatives aimed at the emerging gig and crypto industries. Publication 5382 was released in December to provide taxpayers with updates on the IRS’ FY19 goals. Of the six goals discussed in the report, goal two promised […]
On 27 December 2019, the Italian government issued a decree delaying and establishing new dates for when the NSO platform would go live. The Purchase Orders Routing Node platform (Nodo di Smistamento degli Ordini, NSO) had initially been scheduled to be effective on 1 October 2019. The NSO is the Italian government owned platform through […]
Digital tax reporting requirements have arrived and are here to stay. As the global VAT gap continues to grow (estimated to be as high as half a trillion EUR), countries are increasingly using complex reporting requirements to gain insight into VAT activities. In this rapidly changing environment, it’s of utmost importance for companies to ensure […]
The insurance world is often seen as slow and reluctant to fully embrace technology. However, new competition from the growing number of insurtech companies and the digitisation of reporting to local authorities are forcing insurers to wake up to the wave of technology transformation the sector is experiencing. Still, people behind technology remain key. Perhaps […]
Not all states have the same requirements for completing an unclaimed property state report. The state of New York requires that certain companies publish unclaimed property information in newspapers in the form of advertisements. It is important to note the advertising does not replace the need to send due diligence letters. Both advertising and due […]
This month, Sovos ShipCompliant is set to release the annual Direct-to-Consumer (DtC) Wine Shipping Report with our partners Wines Vines Analytics, based on 2019 data. Soon after, we’ll be sponsoring and presenting an exclusive first look at the report during the Direct-to- Consumer Wine Symposium near the end of January. Here is what you need […]
Tax time is upon us, which means last minute IRS and state tax information reporting changes are keeping us on our toes. Take five minutes to learn what these changes are and what you need to do to protect your business from penalties. 1. California’s last-minute change On December 9th, the Franchise Tax Board posted […]
In a post-Wayfair world, with evolving economic nexus thresholds and a squishier ‘undue burden’ replacing the bright-line “physical presence” rule as the standard for nexus, it’s no surprise that the upward trend in tax calculation volume for ecommerce from Black Friday through Cyber Monday has continued. As evident by the total number of tax calculation […]
Unclaimed property retention requirements vary based on each state’s rules and regulations. Depending upon the property type and state, record retention periods can take up to 10 years, not including the dormancy period. This means you could retain records for up to 20 years. To successfully keep track of all these records and avoid an […]
Tax compliance is not just an issue that accounts receivable (AR) handles. With regulatory changes becoming more and more complex, the responsibility also lies with accounts payable (AP) to minimize a company’s risk. AP plays an important role in indirect tax compliance. States and the IRS continue to digitize efforts with tax collection and enforcement, […]
It has been several years since California changed its unclaimed property reporting process, yet many holders are still unsure how to remain compliant. This is because California’s reporting cycle includes two different reports. Below are the steps to submitting those reports and remaining compliant in California: Step 1: Holder Notice Report The first report is […]