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 4 Features for a European VAT Compliance Solution
Technology-driven initiatives to overhaul outdated VAT regulations are changing the landscape for businesses in Europe. By requiring real-time, transaction-level data, tax authorities are making businesses rethink processes and seek solutions to ease the burden.
Tax authorities across Europe are cracking down on fraud and increasing tax revenue collection through new VAT initiatives. eLedger, eAccounting and eInvoicing requirements are forcing companies to dramatically overhaul their accounts payable, accounts receivable and tax reporting processes.
With constant government updates, mandated regulations, reporting formats, processes and deadlines, businesses must rethink their VAT compliance and reporting approaches. Four must-have solution features can help to simplify operations, decrease costs, and avoid audits, fines and penalties for non-compliance.
As businesses across Europe evaluate the technology needed to help them comply with the various VAT-related mandates being introduced, they should look for:
- Flexible end-to-end integration
- Powerful data analytics
- Reliable security
- Efficient scalability
With each government across the world having different requirements, the compliance costs for global entities can be huge. Sovos can help you:
- Ease the burden of compliance and reduce costs – especially in SAP building, monitoring and maintenance
- Keep up to date with local regulations in every country in which you operate simultaneously across thousands of jurisdictions and taxes
- Localise your ERP in hundreds of facets whilst maintaining your global template
- Efficiently translate your master data to meet government requirements
Simultaneously keep a constant and secure connection to a number of government servers.
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 […]