What’s your digital transformation strategy? Whether you’re in IT, finance, tax or the executive suite, if that strategy doesn’t include tax, you may be overlooking a huge source of risk – and strategic benefit. It’s time to consider launching a conversation about tax in a digitally transforming world. Which is why we’ve created […]
Whilst Vietnam has allowed the issue of electronic invoices since 2011, this has not proved popular with domestic businesses. This is mainly due to the lack of an efficient framework for commercial processes and the technical capabilities required to issue e-invoices compliantly. During the last decade, the Vietnamese government has developed a more robust legal […]
The Hungarian Ministry of Finance had a productive end to the decade. As outlined in an earlier article, the MoF announced a package of measures and proposals as part of its Economic Action Plan for 2020. The aim of the plan is to improve VAT compliance and reduce fraud. A bill to amend the laws […]
Pivotal projects in the development of EU VAT The EU’s Economic and Financial Affairs Council (“ECOFIN”) issued a report in December. This followed its review of EU tax policies and developments since Finland took over Presidency of the Council of the European Union in July 2019. In a previous article we summarised their status review […]
Value-added tax (VAT) does not exist in the United States, but American companies are increasingly having to deal with VAT mandates in Latin America, Europe and Asia. Seeking to make up a massive gap in revenues, tax administrations are mandating strict policies to digitize VAT collection. American companies that fail to comply could see their […]
The new framework for invoice clearance in India is a hot topic that concerns many companies. This is not unexpected considering the size of the Indian economy and the number of companies that will be obliged to comply with the new framework. As outlined and confirmed in the Notification numbered 68/2019 published in the Indian […]
The wording of the EU Directive 2018/1910, effective since 1 January 2020, suggests that EU suppliers must check that other businesses they are trading with within the EU are properly VAT registered. The Directive has triggered concerns about the obligation and the timing of when these checks must be done. What is VIES? VIES, the […]
With today’s announcement that SAP is extending support for its Business Suite 7 software suite until the end of 2027 many are breathing a sigh of relief. But are they falling victim to a false sense of security? While SAP adjusted its timeline, largely due to increasing customer pressure, know that governments have no such […]
2019 was an exciting year for VAT and, given the ever-increasing pressure on governments to increase revenues, it’s likely that 2020 will be just as eventful. Although VAT is an ever-shifting landscape, below are three recent trends that we believe are poised to continue in 2020 and beyond: 1. VAT obligations for remote sellers Globally, […]
Working towards a ‘Definitive VAT System’ The EU’s Economic and Financial Affairs Council (“ECOFIN”) issued a report last month. This followed its review of EU tax policies and developments since Finland took over the Presidency of the Council of the EU in July 2019. The report is broad. It covers digital taxation, contributions to the […]
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 […]
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 […]
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 following is an excerpt from “Trends in Continuous Global VAT Compliance,” the 11th edition of the industry’s most comprehensive guide to e-invoicing, e-archiving and VAT reporting. The full report is available for download. To reduce the VAT gap, countries are pushing taxable organizations to comply with VAT requirements and enforcing different types of legal […]
The International Chamber of Commerce (ICC) has released the new 2020 version of the Incoterms. Incoterms are important business shorthand and understanding their express meaning and intended usage is incredibly important in minimizing business risk and ensuring compliant VAT reporting. The following information provides some basic guidance for tax compliance professionals looking to refresh their […]