Most companies probably don’t understand the risks associated with unclaimed property, but they can be significant. In this eBook, learn:
From 1 July 2021, the existing Mini One Stop Shop (MOSS) scheme transitions to a new framework. This is the 2021 EU e-commerce VAT package. This e-book guides you through the EU’s OSS, IOSS and the new VAT rules for e-commerce.
The growth of e-commerce and cross-border trade is having a radical effect on VAT. Companies large and small are caught up by sweeping changes. With more change on the horizon, now is the time to prepare.
The introduction of the new EU VAT e-commerce package, in addition to the UK’s recent changes to the rules regarding overseas goods sold to customers in the UK, means businesses across the world should implement new systems. Now is the time to familiarise themselves with how the new frameworks affect their operations, commercial position and liabilities in both the EU and the UK.
The goal of the EU VAT e-commerce package is to simplify cross-border B2C trade in the EU, ease the burden on businesses, reduce the administrative costs of VAT compliance and ensure that VAT is correctly charged on such sales. EU businesses will be able to compete on an equal footing with non-EU businesses that charge VAT.
Moving forward there will be:
This e-book answers questions about the upcoming EU e-commerce package helping businesses ensure they prepare for the change and make informed decisions.
As well as providing practical advice for EU and non-EU established businesses, the e-book also includes OSS and IOSS examples. We provide an in-depth view of the potential iterations that apply to direct to consumer businesses and those that sell via online marketplaces.
Download the e-book to understand the implications of the 2021 EU e-commerce VAT package and ensure your business is ready by 1 July 2021 for the significant changes ahead.
As an early adopter of the ‘clearance model’, Turkey positions itself as one of the leading countries in the world when it comes to tax digitisation. For more than a decade the Turkish Revenue Authority (TRA) has successfully collected real-time financial data from businesses ensuring the effectiveness of its VAT enforcement system.
With data is becoming more precious than oil and technology, it has transformed global market dynamics across all sectors, and has changed the way businesses operate today.
Data is also transforming the way governments reduce their VAT gap.
Starting almost two decades ago, the first clearance models were introduced by the tax authorities in Latin America with real-time or near real-time reporting. Governments around the world have since become much bolder in introducing structural changes to the way they regulate and enforce VAT, and often at short notice. Turkey is no exception.
The TRA continue to evolve the scope of its VAT control framework. Navigating this ever-changing and evolving transformation is a challenge for all companies trading in Turkey.
Download this e-book if you are:
A Global Framework: Continuous Transaction Controls (CTC)
The first steps towards the ‘clearance model’ began in Latin America in the early 2000’s, and most of these now have stable CTC systems where a significant amount of the data required for enforcement is based on invoices. A decade later other economies, like Turkey, followed suit. A considerable number of EU member states are now moving toward CTCs, not by imposing ‘clearance’ e-invoicing, but by making their VAT processes more granular and frequent via CTC reporting.
Turkey’s digital tax journey
The e-invoicing framework was introduced in Turkey as early as 2012. Since then the scope of the e-invoicing mandate has grown with new requirements introduced to accelerate the digital tax transformation.
The latest General Communique on the Tax Procedure Law (Communique) published on 19 October 2019 includes even more taxpayers who need to comply with the mandatory e-invoicing framework.
What lies ahead for Turkey’s e-invoicing framework?
When it comes to VAT enforcement, the TRA’s effectiveness now extends to include the scope of its VAT control framework by reducing thresholds and introducing new e-documents. The latest General Communique published by the TRA in October 2019, means even more taxpayers than ever need to comply. This trend is set to continue further.
The real value of VAT within tax compliance shouldn’t be underestimated. It’s one of the fastest growing and rapidly changing indirect taxes for finance teams globally. And, as it’s a transactional tax, errors can’t be easily corrected so the consequences of errors can be far reaching from impacting supply chains, to increased audits, fines, lost revenue and reputational damage.
In recent years, the spotlight on VAT noncompliance has grown ever brighter. Tax administrations worldwide are turning their attention to the VAT gap. In Europe alone the VAT gap sits at €140 billion.
VAT is gaining in importance. Compliance is consequently becoming more complex and intrusive into core financial and physical supply chains. For these reasons, it’s a tax which must be given a much higher position on any finance director’s agenda than before.
Invented in Europe, VAT is, according to the OECD, the world’s fastest growing tax by some distance. The mobility of capital in the modern world is phenomenal – profits and incomes are inherently and immediately transportable. But indirect consumption taxes, tethered to a transaction and a location, are an extremely attractive proposition to tax authorities, offering as they do a certain order and control.
In recent years, the spotlight on VAT noncompliance has grown ever brighter. Tax administrations worldwide are turning their attention to the VAT gap, which in Europe alone sits at €140 billion. These vast sums make the VAT gap a fast moving source of lost revenue that tax authorities are determined to slow. As a result, major shifts in VAT collection and enforcement are taking place, among them continuous transaction controls (CTCs), destination taxability, aggregator liability, e-accounting and e-assessment. These factors are contributing to a multifaceted overhaul of VAT ensuring tax authorities have increased and unparalleled levels of access to granular data leaving businesses little room for error and raising the stakes for compliance.
Insurance Premium Tax (IPT) in Spain is tricky. There are national and regional tax authorities. Let’s not forget numerous IPT variations. Compliance requires in-depth and far-reaching knowledge – mountains of which have been added to our ebook.
We’re here to help. The Sovos IPT team has created
this ebook to help explain the rates, exemptions,
settlements and penalties.
Use this practical guide to stay on the right side of risk.
Deep Spain IPT insight
Essential reading for insurers
The latest developments
Download now to navigate the nuanced IPT landscape in Spain, no matter where your company is based within the country or from afar.
As well as IPT on a national and regional level, it breaks down the fundamental components of the Consorcio de Compensación de Seguros (CCS) and the Fire Brigade Tax.
Spain is one of the most complicated European countries for IPT compliance. It has several tax authorities, and each has its own penalty regime.
After determining which authorities are relevant to your company, you need to understand the rates, exemptions, settlements and penalties.
Consider these three points when complying with IPT rules in Spain:
Spain has national and regional tax authorities
No region is the same
The CCS reporting requirements are significant
Accuracy is paramount to avoid penalties
Timing is key with the Fire Brigade Tax
Registration for new members only opens once a year
If you need more information, use our chat box to speak with our experts right away.
IPT is complex and failing to comply can have serious implications.
At Sovos, we focus on the details to provide you with peace of mind. We’re global tax compliance specialists. Our team of regulatory specialists monitor and interpret regulations around the world, so you don’t have to.
From understanding and meeting the demands of national IPT regulations to delivering dedicated fiscal representation and payment solutions, our business is in helping your business meet its specific regulatory requirements.
Sovos is a market leader for IPT compliance in Europe, filing up to 30,000 tax returns annually valued at €600m+ for our insurance clients. We do this in over 100 countries and 19,000+ jurisdictions around the world.
Whether it’s meeting the demands of specific country IPT declarations or providing dedicated fiscal representation and payment solutions, our combined approach of people, skills and software can help you stay ahead of the constantly changing filing requirements.
Brazil has long been known for its diverse and rapidly changing regulatory environments. New tax laws are continuously being introduced and current laws are often amended without notice. For businesses trying to navigate this landscape it can be challenging, frustrating and even costly. Perhaps what is needed is a new approach to tax. This Ebook guides you through the process of transforming your approach to tax in Brazil.
Sovos recently hosted a webinar featuring João Cavalcanti, Director SAP Partner Solution Center from SAP; Uira Gomes, Global Tax Director from AB InBev and Paulo Castro, Brazil country manager, Sovos. The focus was on how to navigate the most stringent regulatory landscape in the world while undertaking the technology and compliance journey needed to meet the demands of modern tax environments. This Ebook was generated from this discussion.
Why is getting tax right in Brazil so important? Because Brazil is the world’s ninth largest economy and is a major player in financial markets and global trade. Businesses across industries have embraced Brazil as an important partner in their growth and expansion plans, the economic might that Brazil brings to the table is critical for establishing a foothold in the South and Latin American markets.
To deal with this dilemma, organizations are looking to new approaches and solutions to help them manage their compliance obligations. Business as usual when it comes to tax in Brazil is a losing proposition and no longer acceptable. Organizations are now reevaluating how they implement new technology, when to involve tax as part of the discussion and the relationship they have with their technology partners.
While value-added tax is constantly evolving, Brazil’s complex and rapidly evolving tax codes and regulations are on another level and making it increasingly difficult for businesses to remain compliant. Many companies are turning towards VAT tax software and automation technology to reduce the burden of managing these processes.
Sovos has considerable experience in providing VAT tax solutions for companies operating in Brazil. Our team of local, regulatory experts is second to none and our cloud-based tax solutions work seamlessly with existing technology platforms such as SAP.
If keeping current with changing laws in Brazil is creating an undue burden on your organization and remaining compliant with VAT tax mandates has become more a matter of hope rather than a probability, we invite you to talk to our team of experts, we can help manage this process for you and allow you to focus on your core business.
As a product or a service that is subject to VAT moves along the supply chain, transactions are documented, allowing the government to verify whether VAT was introduced at each step correctly through an audit.
While VAT is great in theory, it can leave massive holes in practice. Even though documentation might be out there, verifying the reliability of that documentation at every step in the supply chain based on aggregate periodic reports, paper-based records, and auditing companies’ diverse accounting systems is an almost impossible job for millions of supply chains around the world.
Christiaan Van Der Valk
Vice President, Strategy
The result? VAT gaps. The EU reported to be approximately 140 billion euros short last year alone. To bridge this gap and increase visibility and control, tax administrations are undergoing aggressive digital transformations.
As a result, four notable trends in VAT and technology have emerged that will have a significant impact on businesses.
These four trends are tax considerations that all businesses, especially SAP customers, should be aware of and have a plan to address.
In this article, we will cover these trends and provide expert tips on how your organization can be ready for any changes coming your way
Achieving sales tax compliance is a complicated process that is growing more complex by the day. Every new regulation, law and rule must be accounted for or you run the risk of being audited. There are several steps in the process that must be accounted for and managed correctly.
First, sales tax determination is something that every business should fully understand. If you don’t know how to determine sales tax, you are already at a disadvantage in trying to meet and maintain sales tax compliance. You are likely to either over or under charge a customer which can lead to problems with regulatory authorities either way. So, take the time to understand this process and get it right from the beginning.
Once you understand how to determine sales tax correctly, then comes the process of collecting and remitting sales tax to the appropriate regulatory authorities.
Armed with the knowledge of how to properly calculate and determine the proper amount of sales tax to charge, you can effectively process these transactions with confidence that you are doing so while in full compliance with regulatory standards.
However, collecting sales tax is only one half of the equation. To be fully compliant, you also must remit sales tax on time and use the proper forms and method. The remittance process can vary greatly state by state so it’s essential that you understand the regulatory requirements of each state you are operating in.
Some states will require paper-based submissions while others are completely electronic. Some will have multiple forms depending on the products or services you sell; others will have one standard form for all transactions. Understanding your requirements upfront will eliminate many headaches down the road.
To help you navigate this maze, we have partnered with our colleagues at LedgerGurus to provide this guide on how to successfully collect and remit sales tax. Or as we refer to it, manage both sides of your tax obligations.
We believe you will find the insights and links contained in this guide helpful as you look to better understand the process of determining sales tax obligations and managing the process through to successful remittance.
This guide is intended to inform and educate you as to the many different processes and methodologies that currently exist across the different states. When it comes to tax determination and remittance, there is no one size fits all approach, but there are some helpful resources available to you.
If you operate a business in North America and are looking to expand into international markets you are going to need to become familiar with the concepts and implications of Value Added Tax (VAT).
VAT is the most common form of consumption tax used today, out of the 193 countries around the globe, 166 are currently operating with a VAT as a key part of their tax mix.
Overcoming the various challenges VAT offers doesn’t happen overnight, and as governments all over the world are increasingly focusing on their revenue base, compliance at first instance is vital in the face of more aggressive audits.
This guide will provide you with the necessary base understanding of VAT. It offers some valuable insights and guidance to getting started when you enter a new market that employs a VAT system of taxation and offers expert opinions on when to seek help.
The Comprehensive Guide to Understanding and Complying with IRS TIN Matching Requirements
Enforcing tax identity information reporting is a priority for governments to increase revenue and reduce the current $9B tax gap. Businesses must report employees’ tax identification numbers (TINs) and names to government agencies to ensure that individuals and businesses are being reported in their database correctly and reconcile what’s being reported on 1099 and annual income tax returns.
If reported incorrectly, the IRS can take action by issuing Notice CP2100 (“B” Notice), assessing Notice 972CG (“P” Notice) and enforcing backup withholding by issuing penalties to a business.
Knowing what the IRS requires in 2020 will minimize the liability of incorrect reporting to the IRS. This can help your business save significant time and money.
To better understand what is being required of you, download the free Tax Identity Management 101 white paper to learn:
Multinational companies around the world are faced with the reality that tax authorities in the countries where they operate are introducing, or making major changes to digital tax mandates at an ever increasing pace.
Continuous transaction controls, often referred to as CTCs, where the tax administration pre-approves invoices in real-time via an automated data exchange with business source systems, are the leading and growing trend.
This eBook will help you to understand how your business can prepare for the growing wave of CTCs and learn why sales and purchase transactions will face increasing, and continuous, tax scrutiny.
Download your complimentary copy of Get Ready for Continuous Tax Controls to learn:
The role of tax managers in software procurement is rapidly evolving. Businesses today are involving VAT and other tax professionals early in the buying process to provide expertise and ensure that every business process that needs to be integrated with real-time tax platforms is doing so in a timely and cost-effective way.
VAT compliance can only work smoothly if specific processes are made a standard function of day-to-day business operations. When leaders in finance, supply chain management, IT, client operations and others acknowledge the importance and interdependencies of each other, software procurement becomes a shared goal.
Download your complimentary copy of Software Procurement Guidelines for Tax Managers to learn more about:
Navigating Location of Risk can be quite daunting. This ebook is your compass, helping you sail smoothly to IPT compliance. With use cases and examples to follow, this ebook will help you successfully navigate one of the more complex elements of insurance premium tax.
Understand how to determine Location of Risk
Minimise compliance risk
Written by IPT experts
Navigate legal framework
Understand Location of Risk
Legal cases to learn from
This ebook will help you navigate Location of Risk and the rules that apply in the 27 member countries of the European Union (EU), the European Economic Area (EEA) and the UK.
It guides you through the countries where the rules apply, the legal framework that prompted the rules, examples of the criteria used to determine Location of Risk, local implementations that differ from the norm and how premium allocation works in practice.
Geopolitical background
Legal framework
Solvency II Directive 2009/138/EC, Article 13(13) including examples of the four criteria to determine Location of Risk
Solvency II Directive 2009/138/EC, Article 157(1)
Local implementation of Location of Risk rules – Switzerland, Liechtenstein, United Kingdom and Germany
Key takeaways
Premium allocation
How Sovos can help
Following the Solvency II Directive 2009/138/EC, Article 13(13) enables insurers to identify the correct Location of Risk. This directive, amongst other things, defines the four criteria to determine which territory the risk is deemed to be located in and where it should be taxed.
After identifying Location of Risk, Solvency II Directive 2009/138/EC, Article 157(1) outlines that the Member State can tax that premium.
Consider these three points when determining Location of Risk:
IPT is not harmonised
Consider local IPT law when determining Location of Risk
Risk determines the criterion
Assess the risk to know what criterion to use: e.g. property, vehicle, holiday or travel, other
Non-EU / EEA region
Local rules typically differ from EU/EEA Location of Risk rules
If you need more information, use our chat box to chat with our experts right away.
IPT is complex and getting it wrong can have serious implications.
At Sovos, we take care of the detail, giving you the peace of mind you need. We’re global tax compliance specialists and we solve tax for good. Our team of regulatory specialists monitor and interpret regulations around the world, so you don’t have to.
Whether it’s meeting the demands of specific country insurance premium tax declarations or providing dedicated fiscal representation and payment solutions: easing your IPT compliance burden is our business.
Sovos is a market leader for IPT compliance in Europe filing up to 30,000 tax returns annually valued at €600m+ for our insurance clients. We do this in over 100 countries and 19,000+ jurisdictions around the world.
Whether it’s meeting the demands of specific country IPT declarations or providing dedicated fiscal representation and payment solutions, our combined approach of people, skills and software can help you stay ahead of the constantly changing filing requirements.
