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Countries within the European Union (EU) are losing billions of euros in value-added tax (VAT) every year because of VAT fraud, VAT evasion, VAT avoidance and inadequate tax collection systems. As of 2016, the VAT gap in the EU was 159.5 billion euros, or 14% of the total expected VAT revenue for the EU. As […]

Global companies are increasingly using different tactics to address today’s onerous tax compliance burdens. Some rely on outsourcing to third parties, some have in-house teams to manage VAT compliance and reporting, and others look to shared services to centralise tax filing and reporting tasks. In each approach, technology is essential to keep pace with today’s […]

Ask any business student what the secret to commercial success is and they’ll tell you it’s profit margin, not just sales volume. Therefore, to be good at selling things you have to excel at buying them. Usually, companies have a strong incentive to tightly manage what’s called ‘direct supplies.’ These are the raw materials and […]

Rapidly changing VAT compliance and reporting regulations sweeping across Europe are forcing companies to determine the best – and most cost-effective – way to minimize the risks and burdens of these measures. These companies need to evaluate three key areas – tax/finance, IT and implementation – to calculate the potential return on investment (ROI) of […]

By Andy Hovancik – President & CEO Today, we announced the acquisition of Stockholm-based TrustWeaver to create a clear leader in modern tax software. TrustWeaver has become a seal of approval for the world’s largest procure-to-pay and AP systems. This is a testament not only to the effectiveness of its e-invoicing software and integrations, but […]

Hoje nós anunciamos a aquisição da empresa sueca TrustWeaver para criar uma clara liderança na nova era de software fiscal – e expandir nossa cobertura de e-Invoicing (faturação eletrônica) a 60 países em seis continentes. Nós estamos assistindo à faturação eletrônica espalhar-se por todos os continentes, adicionando complexidade e risco ao seu processo financeiro e […]

International News European Council Clears Way for Italy e-Invoicing Requirement On April 16, 2018, the European Council approved Italy’s derogation request from Articles 218 and 232 of the EU VAT Directive, bringing Italy one step closer to implementing its mandatory e-Invoicing requirement. Article 218 requires that Member States accept invoices in paper or electronic form. […]

With implementation of technology-enabled tax compliance and reporting initiatives, Spain is leading the way throughout Europe not only in closing the VAT gap but also in obtaining visibility into business data. As more and more countries move toward requiring transactional data in real-time, most notably Italy and Hungary, it’s important for companies to consider lessons […]

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 […]

Several nations worldwide are following in the footsteps of pioneering Latin American countries, leveraging data and automation to ensure compliance with tax regulations. Building on early requirements for VAT reporting and eFiling, many countries are now focusing on transactional data with real-time electronic accounting, ledger, invoice and receipt mandates, paving the way to reach the […]

Only two months remain until Hungary’s new real-time VAT reporting requirements kick in on July 1, 2018, and businesses must be prepared to comply with a fully automated process. Spain was the first country in Europe to adopt a Latin American-style VAT reporting model with its Immediate Supply of Information (SII), which requires companies to […]

International News EU Proposes An Interim Tax On Certain Revenue From Digital Activities The European Commission recently proposed new rules to ensure the fair taxation of digital business, placing the EU at the forefront in designing tax laws aimed at the modern digital economy. The Commission is seeking to instate an interim tax to generate […]

As a part of the Golden Tax System, the well-known tax administration system in China, the Third Stage of this system named ‘Golden Tax III’ has been fully implemented for more than a year. The goal of this stage is to establish a consistent tax administration backed by information technology and to enable highly efficient […]

In theory, VAT collection should be a neutral event for companies, since the tax is born and paid for by the consumer. However, with a significant value of taxes passing through your company, VAT can be a major liability if it is not claimed, collected and settled properly. Companies often view VAT as nothing more […]

Businesses across Europe have been so focused on updating their processes and technologies to ensure they can transmit data under new VAT compliance and reporting regulations that they are often overlooking an important piece of the puzzle: reconciliation. VAT regulations are becoming more complex, with businesses being required to report and share detailed transactional data, […]

International News European Commission Backs Italy’s E-Invoicing Mandate On February 5, 2018, the European Commission backed Italy’s e-invoicing mandate by recommending the EU Council approve Italy’s derogation request from the EU VAT Directive. By way of background, Italy’s mandate (which would become effective in two stages starting on July 1, 2018) requires taxpayers to provide, […]

One of the key challenges within e-invoicing is to keep your processes and systems compliant at all times. Guaranteeing compliance is not easy. As we say here at Sovos, “regulation constantly evolves; VAT requirements are moving targets and there is no such thing as being half compliant”. One of the biggest mistakes enterprises make is […]

Finding potential errors or missing data before filing VAT forms is essential to efficient VAT compliance and reporting, but this process is often left to manual, random and selective processes. These ad hoc data checks simply aren’t enough when it comes to ensuring accurate VAT compliance in a changing regulatory landscape requiring real-time data sharing […]