As tax authorities move to technology-driven value-added tax (VAT) reporting requirements, businesses operating in Europe will need to strap on their seat belts and prepare for turbulent times ahead, according to a new study by Sovos that examines the compliance-related disruptions that are sweeping across the globe. In the report – The Evolution of Value-Added […]
VAT compliance and reporting can place a major burden on IT teams. With customizations required for every jurisdiction, constantly changing regulations, necessary integrations with government portals and a variety of data submissions and reports required, compliance can quickly erode IT’s time for other projects and innovation. Constant fire drills are only the tip of the […]
Even though the year is just underway, 2018 is already bringing a flurry of activity around indirect taxation in the United Kingdom. While much of the detail still needs to be sorted, one thing is clear – significant compliance changes are on the horizon and companies operating in the UK will need to adapt. Specifically, […]
As tax authorities in Latin America, and now Europe, adopt new eInvoicing and eAccounting initiatives, companies are realizing that SAP is not equipped to support the unique needs from country to country. When faced with this challenge, some companies either opt to manage compliance internally or move compliance outside of SAP, both of which are […]
Tax authorities in countries around the world are changing VAT compliance and reporting rules in an effort to minimize tax gaps, improve efficiency and accuracy, simplify auditing and ultimately achieve real-time visibility into companies’ operations. While every country is at a different stage in rolling out these initiatives and they all take slight different approaches, […]
International News EU Council Approves Overhaul of VAT System The Council of the European Union has adopted a legislative package that will substantially modify Europe’s VAT law from 2019. This package – consisting of a Directive and two Regulations – represents the first step towards enacting the European Commission’s 2016 Action Plan on VAT, which […]
International News OECD Issues New Advice on VAT Administration On Oct 24, the Organization for Economic Co-operation and Development (OECD) released guidance on how countries can implement effective VAT collection systems for cross-border trade, particularly concerning digital/electronic supplies. The guidance, which is entitled, Mechanisms for the Effective Collection of VAT/GST, relates mostly to design options […]
Interview with Christiaan van der Valk, Vice-Chair of the ICC Commission on the Digital Economy. This interview was originally published by the International Chamber of Commerce at: https://iccwbo.org/media-wall/news-speeches/real-time-controls-changing-trade-know/ What ICT trends are currently on your business’s radar? There are many trends, but I’d say that one of the most significant is where companies are increasingly […]
When I read this recent social media initiative by CloudTrade, my first reaction was a wave of nostalgia for the debate about VAT e-invoicing requirements that raged in Europe between 2005 and 2010. During those years, emotions ran high between e-signature haters and e-signature proponents in the context of B2B electronic invoicing. The first group […]
The efforts involved in planning and executing the introduction of VAT is a big task for any one country, let alone for a group of neighboring countries to attempt at the same time. Nonetheless, the Gulf Cooperation Council (GCC), currently Saudi Arabia, UAE, Oman, Qatar, Bahrain and Kuwait, have during the last couple of years […]
As businesses consider technology to support compliance, there are two primary types of solutions they can choose: point or scalable. In a recent infographic, we examined how point solutions (which are deployed locally and support a minimal number of regulations) stack up against scalable solutions (which are available globally or regionally for a variety of […]
New and evolving VAT compliance and audit mandates are putting a lot of pressure on businesses, making them reevaluate how they internally manage indirect tax determination and reporting. Nearly one-third of CFOs told Grant Thornton that keeping up with the volume and complexity of compliance changes is one of their biggest challenges. Traditional compliance approaches […]
Several modifications to the Spain’s SII Real-Time Reporting mandate are expected to go into effect during 2018 and beyond. We already announced that SII will expand to Basque Country and Navarra on January 1, and now we’re anticipating additional changes to launch simultaneously Annual Reports due by January 30, 2018. SII reporting obligations for 2017 […]
International News European Commission Proposes VAT Overhaul On October 4, 2017, the European Commission published a set of proposals aimed at simplifying and modernizing the current VAT system. The “cornerstone” principles of the Commission’s approach are: • Combating VAT fraud and reducing the €150 billion VAT Gap • Establishing a “One Stop Shop” for cross-border […]
Implications of OECD VAT Guidance for Businesses On Oct 24, the Organisation for Economic Co-operation and Development (OECD), released further guidance on how countries can implement effective VAT collection systems for cross-border trade, particularly concerning digital/electronic supplies. Business should take particular note of this development as history proves that OECD guidance, particularly in this space, […]
Indirect taxes contribute to almost half of Hungary’s total tax revenues, making accurate, efficient VAT collection critical to keeping the government running. With a VAT Gap (the difference between the amount of VAT actually collected and total VAT owed) of 13.7%, well above the E.U. median of 10.9%, Hungary’s tax authority has implemented several efforts […]
Our October 24 Webinar, “Building the Tax Team of the Future to Successfully Navigate the Regulatory Storm,” is now available onDemand. During the webinar, we asked attendees a series of four detailed polling questions to help them measure their tax teams’ ability to deal with regulatory and business change. Questions were based on a Reactive-to-Proactive […]
It’s clear business evolution, technology disruption and related tax compliance laws are creating increased complexity and becoming tremendous business liabilities. In today’s regulatory environment, businesses must view tax compliance as a critical function, committing the right resources, technology and process discipline necessary to maintain compliance and respond to the associated audits so the business can […]