Blog

Key Reporting Considerations for Insurers Writing Insurance Across the EU

Freedom of services insurers are faced with a number of different obligations when entering new territories and writing insurance business within the European Union.  One that may initially be overlooked relates to which policy details are required to be recorded and then reported to the tax authorities.   It is essential that all insurance premium […]

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Europe Embraces Digitized Invoices but Country Specific Requirements are Diverse

Based on the Billentis report of 2019 (The E-invoicing Journey 2019-2025), automated e-invoicing will generally result in cost savings of 60-80% compared to conventional paper format invoices. In this age of digital transformation, optimizing invoice flows is top of corporate agendas for most companies to improve efficiencies and reduce operating costs. And many companies want […]

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How to Calculate Hungarian Insurance Premium Tax

Many insurance premium taxes (IPT) and levies exist throughout Europe and, due to the lack of tax harmonisation, there are no general rules governing how the tax is calculated.  There are a number of different ways to calculate these taxes that are used across the EU including percentage rate, fixed amounts, sliding scales and other […]

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Poland Dives Deeper Into VAT Split Payments – Mandatory From 1 September 2019

Split payments is one of the methods that European countries with a considerable VAT gap use to tackle it.  Across the EU, the VAT gap in the EU in 2016 was reported to be €147.1bn. Poland introduced voluntary VAT split payments in July 2018. Since then around 25% of taxpayers have adopted this payment method.  […]

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Marketplace Facilitator Tax Collection Responsibilities in the European Union

Marketplace Facilitators and Payment Processors Find Themselves in the Global Tax Compliance Crosshairs – Part III The spread of the digital economy presents massive growth opportunity, but it also creates challenges for global taxation. As the VAT landscape responds to technological change, compliance becomes increasingly burdensome and costly, and the need for a complete solution […]

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The Cost of Getting it Wrong – The Benefits of Getting it Right

Premium taxes shouldn’t be overlooked as pressure mounts for insurers to protect profit margins. The UK insurance market in recent years has achieved on average a combined ratio of 95%, meaning that for every £100 of premium income written, the insurer makes an underwriting profit of £5. If you then consider that the standard rate […]

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Shielding SAP Central Finance Migrations from Tax Compliance Mandates

With more companies focusing on global integration, cross-border supply chains and expanding ecommerce, governments across the globe are introducing new ways to enforce tax rules and close their tax gaps. The evolving global regulatory environment produces unique tax determination and reporting challenges in the United States and additional VAT and e-invoicing compliance challenges around the […]

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Italian Prepayments Can Be Painful

Some insurance premium tax regimes operate a kind of prepayment mechanism, whereby insurers are required to pay an amount to the tax authorities in anticipation of future tax liabilities.  This credit is then drawn down on or adjusted as and when actual tax liabilities crystallise.  Prepayment should not, therefore, represent an additional cost to insurance […]

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Sovos Expert to Speak on Tax Compliance in S/4HANA at SAPPHIRE

Pawel Smolarkiewicz, chief product office at Sovos, will speak on the digital transformation of tax and its effect on SAP S/4HANA at next week’s SAPPHIRE conference in Orlando.   As countries make continuous tax compliance the new normal, businesses are finding that they have to respond by putting tax compliance functionality at the core of […]

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E-invoicing: Optimization Strategies to Withstand the Digital Tax Tsunami

The great corporate awakening Many corporations that previously saw e-invoicing mandates as a developing country problem are now realizing that invasive transaction-based digital tax controls are popping up everywhere around the world. Teams of experts and executives across finance, IT, tax and other functions are being pulled together by leading enterprises to define ways to […]

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New Terrorism Compensation Scheme Introduced in Denmark

The Danish government has introduced new law creating a state-owned insurance scheme for compensation for losses arising from a terrorist attack using chemical, biological, nuclear and radioactive (CBNR) weapons. The scheme comes into effect on 1 July 2019. There had been concerns that CBNR terror coverage available in the market was limited and, as it […]

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SAP Central Finance Drives Move to S/4HANA, Making Tax Compliance a Priority

SAP Central Finance is driving migration to SAP S/4HANA as companies look to deliver value to their finance and accounting organizations, as well as improve on the configuration of previous financial systems. And for most companies making the transition, tax compliance is a priority. In a recent survey by SAP Insider, 74 percent of SAP […]

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Deadline Extended for Turkey’s E-Waybill Mandate

A draft circular, published by the Ministry of Treasury and Finance of Turkey on 15 May, has proposed an extension to the deadline for the mandatory issue of e-waybills. Whilst the circular still needs to be formally approved, the new deadline is expected to be 1 January 2020.  The postponement to the transition period gives […]

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SAP Central Finance Migration: Tax Compliance Spells Trouble

SAP S/4HANA is the promised land for SAP customers: an entire suite of ERP functionality in one place with a single data store. The ability to run all ERP capabilities, both from SAP and non-SAP systems, from a single source represents delivery of a model IT professionals and SAP administrators have sought for years. Getting […]

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Sovos Named a 2019 Spend Matters Provider to Know for Procurement Innovation

Sovos has been named a ‘2019 Provider to Know’ by Spend Matters for innovation in procurement. Spend Matters released its 6th annual “50 Providers to Know/50 Providers to Watch” lists today in conjunction with the annual ISM conference, naming Sovos as one of its 50 Providers to Know for 2019. The recognition highlights Sovos’ Intelligent […]

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Brexit Contingency Plan: IPT implications

Brexit has been the main topic on the news and in our conversations for almost three years, and if we thought we would get some answers by the end of March 2019, then we were definitely wrong!  There are now even more questions to answer and possible outcomes to plan for, but businesses cannot sit […]

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Continuous Transaction Controls for Tax: Why Reporting vs. Clearance Matters

Very little about the emerging global digital tax environment is simple. That includes the countless different models tax authorities use to execute it. The two types of continuous transaction controls, reporting and clearance, may on the surface look similar but are not at all the same, and companies need to know how to operate under […]

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Compliance in the Digital Age Requires a New Breed of Indirect Tax Professional

Today’s tax and compliance managers need to follow the Scouts’ motto:  Be Prepared. Properly managing taxation and reporting burdens takes a team of professionals – from finance, tax and accounting to IT – colleagues willing to work together to establish the policies and controls that make it possible to meet the demands of tax compliance.  […]

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Portugal‘s New E-Invoicing Rules Impact Archiving and Reporting

Beyond the implications outlined in our last blog, Decree-Law 28/2019 (the Decree-Law)  impacts areas beyond invoicing, introducing modifications to both archiving and the reporting of tax data. Mandatory electronic archiving A novelty of the Decree-Law is the explicit introduction of an obligation to archive electronic invoices in electronic format which in turn further promotes the […]

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Developing a Taste for the Four Flavors of E-archiving

As far back as the 1940s, Coca-Cola used the tagline “It’s the Real Thing” to advertise its famous beverage. The company could just as easily been talking about e-archiving or, at least, answering the question electronic archiving systems have to answer about electronic invoices. E-archiving not just storage. Storage is part of what a compliant […]

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