Stay Current With Regulatory Changes Using VAT Automation Software

Sovos
October 9, 2015

This blog was last updated on October 9, 2015

What Causes Problems for Companies When it comes to VAT Compliance?

According to Aberdeen Group, a leading research organisation, staying up-to-date with the many and varied rate and rule changes is the single most challenging aspect of VAT compliance. Given the ever-changing nature of the VAT regulatory environment, it is easily possible to lose sight of new legislation and all regulatory changes concerning VAT throughout Europe and beyond.

Completing necessary returns in various countries on time often leaves little time available for the necessary research and implementation of regulatory changes within the various departments and systems needed to maintain compliance. Mistakes can therefore quickly result in non-compliance without being noticed immediately. Aberdeen research has shown that tax changes take an average of nearly 19 days to fully be implemented in an IT system, which creates opportunities for errors with tax logic that is continuously out-of-date. Updates can be missed if there is no dedication to research, and even if there is, the direct opportunity cost of dedicating resources to time consuming research and regulatory interpretation can be substantial, particularly when those doing the research have no substantial VAT compliance expertise.

This issue is compounded by organisations operating in multiple jurisdictions, that may have many individuals across the organisation doing compliance research for their various business units, providing little synergy for the organisation as a whole.

How Does a Modern VAT Automation Tool Help Solve these Complex Issues?

A modern VAT automation tool can help to address these common issues in a number of ways.  First, modern VAT compliance technology should cause no interruption to the every day workflow through updates or lengthy IT implementations, but should be a truly automatic solution that implements changes, without delay, without the need for IT involvement or manual downloads. Using a hosted solution also allows users to work from various locations and therefore offers flexibility for larger organisations that rigid systems such as ERP’s in many cases do not allow. Many hosted systems also offer best in class data security, with safe locations in central Europe, such as Germany, which has one of the strictest data privacy laws.

Opting for a hosted solution also ensures that implementations can be managed without IT departments or with their minimal involvement, further decreasing implementation time and allowing organisations to efficiently implement “best in class” process changes that will get your VAT process on track.

When considering an automated VAT solution, a business should take into account what aspects of the process would benefit most from time savings, which in many cases tends to be the data gathering as well as the analysis stages of the process. Having your VAT process mapped with a specialist during implementation is therefore crucial and ensures that the product will work smoothly with your existing structure.

This also prepares your department for any changes that might occur in the future. The flexibility of this initial tax code set-up allows you to easily build and update requirements yourself going forward, cutting out the need to constantly use a costly specialist to update the tool every time you want to run a report or generate a specialised report for a specific country, company or other discrete set of data. This also ensures that tax updates that are most relevant to you will work with your current tax logic and do not need to be re-configured individually.

VATware: A Modern Solution to Designed to Stay Current With Regulatory Changes throughout Europe

Our VAT automation software, VATware, has been developed by VAT experts to solve the common challenges of inflexible and outdated VAT technology tools and combining it with current demands of the market. The tool is a truly innovative SaaS product that was first developed internally to help us cope with our growing VAT compliance engagements and has been shaped to our high demands to continuously cut time and costs.

However, over the last 10 years, VATware has grown into an enterprise class software that is valued by a growing number of Fortune 500 companies. We designed it to enable corporate tax departments to significantly improve their VAT compliance process. If you have any questions or would like to know more how VATware could help optimise your VAT process, please get in touch.


Sign up for our exclusive tax community today. As a member, Sovos Compliance offers a monthly newsletter to keep you up-to-date with any regulatory VAT changes in the European Union and beyond, as well as relevant articles around VAT compliance and automation.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Sovos

Sovos is a global provider of tax, compliance and trust solutions and services that enable businesses to navigate an increasingly regulated world with true confidence. Purpose-built for always-on compliance capabilities, our scalable IT-driven solutions meet the demands of an evolving and complex global regulatory landscape. Sovos’ cloud-based software platform provides an unparalleled level of integration with business applications and government compliance processes. More than 100,000 customers in 100+ countries – including half the Fortune 500 – trust Sovos for their compliance needs. Sovos annually processes more than three billion transactions across 19,000 global tax jurisdictions. Bolstered by a robust partner program more than 400 strong, Sovos brings to bear an unrivaled global network for companies across industries and geographies. Founded in 1979, Sovos has operations across the Americas and Europe, and is owned by Hg and TA Associates.
Share this post

Hungary Supplemental Insurance Premium Tax
EMEA IPT
July 11, 2022
Extra Profit Tax: An Introduction to Supplemental IPT in Hungary

This blog was last updated on October 28, 2024 Update 7 October 2024 by Edit Buliczka Hungarian Tax Office Updates IPT Declaration Form for 2023 The procedure necessary to correct an underdeclared premium figure in Hungary can be complicated. The complexity of a correction for return form 2320 has become even more challenging. Following a […]

E-Invoicing Compliance EMEA VAT & Fiscal Reporting
November 1, 2024
New ViDA Proposal Set for ECOFIN Approval

This blog was last updated on November 1, 2024 The Council of the European Union has released a new proposal regarding the VAT in the Digital Age (ViDA) reform. The proposal aims to modernise and streamline VAT systems across the EU, notably e-invoicing and Continuous Transaction Controls (CTC). Members States will review it on 5 […]

what is peppol
E-Invoicing Compliance North America
October 29, 2024
What it is PEPPOL?

This blog was last updated on October 29, 2024 Peppol E-invoicing explained: What it is and how it works The global adoption of electronic invoicing is accelerating. Governments worldwide are pushing to adopt e-invoicing to digitally transform their national systems and, often, to close the VAT gap. While many countries have introduced their own e-invoicing […]

remote sellers sales tax
North America Sales & Use Tax
October 28, 2024
Will Congress Act to Simplify Remote Seller Sales Tax Collection

This blog was last updated on October 29, 2024 When the United States Supreme Court ruled in 2018, that South Dakota’s law imposing sales tax collection requirements on sellers without in-state physical presence was constitutional, it did not grant states free reign. States are still responsible for ensuring that their sales tax requirements are manageable, […]

dtc shipping laws for craft spirits
North America ShipCompliant
October 23, 2024
Why It’s Time to Reform DtC Shipping Laws for Craft Spirits

This blog was last updated on October 23, 2024 While wine lovers have enjoyed the convenience of direct-to-consumer (DtC) shipping for nearly two decades, the craft spirits market is still not afforded the same access. Outdated and restrictive spirits shipping laws have kept the spirits industry from fully leveraging the benefits of DtC shipping, leaving […]

reporting unclaimed property
North America Unclaimed Property
October 21, 2024
Three Key Reminders for Businesses Reporting Unclaimed Property

This blog was last updated on October 21, 2024 Unclaimed property compliance is one of those legal obligations that often flies under the radar for many businesses, especially smaller ones. However, failing to stay compliant can quickly turn minor oversights into major liabilities. In many cases, the penalties far exceed the value of the property […]