When New York first passed its law defining what constitutes a “vendor” subject to collecting sales tax in the 1980’s, the idea of online shopping sounded like science fiction. In retrospect, NY may have effectively enacted the first “economic nexus” law when they drafted their definition of “vendor” to include a person who regularly or […]
Top 3 Myths Surrounding VAT Compliance and Reporting Solution Implementation
With vast changes in VAT compliance and reporting regulations sweeping across the globe, companies need to strategically evaluate their approach to compliance to ensure they stay up-to-date and minimize the risk of errors, fines, penalties and even operational shutdowns.
But companies often overlook an important component in selecting a proactive, intelligent approach to VAT compliance and reporting: implementation.
Implementation time and resources must be considered from the start, and the selected solution must be implemented in a way that meets the needs of all stakeholders and the government regulations to be fully effective.
Yet despite the magnitude of implementation, companies often do not dedicate the time and resources necessary to manage this process effectively. Common misconceptions about VAT compliance and reporting solution implementation can hinder companies’ progress.
- Implementation is not a switch companies can simply turn on. Like any software implementation, VAT compliance and reporting solution implementation takes time and must be started well in advance of when you need to go live. This is especially important when approaching a new compliance mandate with a hard deadline.
- Implementation is not one-size-fits-all. Every company has different processes and formats for capturing and reporting data, meaning your compliance solution is based on your specific business scenarios.
Implementation is not a hands-off process. Because of these customizations and the critical nature of compliance, implementation is a partnership between your team and your technology vendor.
Sovos can help you manage a successful implementation and set your company up for audit-proof, efficient compliance. Contact us to get started.
With recent enforcement measures, the IRS has offered definitive proof that the Affordable Care Act (ACA) is still alive and that the agency plans to strictly enforce ACA reporting. Last spring, the agency issued Letter 226J to Applicable Large Employers (ALEs) that failed to cover 95 percent of employees. ALEs are companies with 50 or […]
UPDATE (Jan. 8): Reporting season is moving forward according to plan. The IRS has announced that it will process tax returns on schedule and without delays. While the agency will clarify its contingency plan in the coming days, organizations should proceed as planned with 1099 reporting and other seasonal filings. The IRS will recall a […]
The South Dakota v. Wayfair decision last June has created a lot of angst for indirect tax professionals and the businesses they work so hard to protect from the burdens of sales and use tax filing. Six months later as we begin the new year, that angst has not gotten any lighter. Any federal legislative […]
2018 was a volatile year in indirect tax compliance for tax, finance and IT professionals worldwide. With an increase in globalization and tax gaps surpassing tens of billions in some countries, it’s not surprising that one of the biggest challenges governments are addressing is revenue collection. Like enterprises, governments are creating new, technology-driven processes to […]