159.5 Billion Reasons Why the Global Tax Landscape Is Changing 

September 22, 2017

The VAT Gap in the EU was estimated to be €159.5 billion in 2014, and the enormity of that gap is one of the reasons why the global tax landscape is changing so dramatically.

Sovos explained this development to attendees of the FD Exchange conference, which took place in the Steigenberger Airport Hotel in Amsterdam. The two-day conference brought together senior finance professionals to discuss the business challenges they faced and which tools and solutions they planned to invest in to meet those challenges.

Sovos used the event as an opportunity to show the audience how the tax landscape was changing but more importantly, why – and what steps companies should be taking to prepare for these changes. Here are three takeaways:

  1. Governments are closing the tax gap. The European Commission estimates the difference between what its expected VAT revenue is and the amount actually collected is the equivalent of a total revenue loss across the EU of 14.03%. The EU has since begun to adopt a tougher approach, implementing technology to increase reporting efficiency and accuracy, reduce costs, improve cash flow, reduce tax fraud and share more data with other tax authorities.
  2. Latin America is leading the way. Governments in Latin America have been spearheading the e-invoicing movement for years, and their efforts are paying off. Brazil has seen its tax revenue increase by $58 billion by plugging its leaks in invoicing and reporting. Mexico has increased its tax collections by 34 percent since rolling out its e-invoicing requirement. A feasibility study carried out by the Colombian government estimated Colombia could reduce tax evasion by 50 percent and increase revenue by $8 billion by implementing an e-invoicing mandate. These successes are serving as examples to EU governments looking to crack down on possible tax evasions and maximize their revenue.
  3. The global tax landscape is evolving. The shift to technology solutions is gaining steam around the world, and the time is now to implement strategies that address this unprecedented trend. Companies need to decrease costs, simplify operations and acquire new capabilities to remain compliant with new regulations.

Take Action

Want to check out the presentation Sovos made at FD Exchange? Click here to download. Or contact Sovos by email on info@sovos.com or by telephone +31 (0) 20 4074 513.

Sign up for Email Updates

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



Sovos was built to solve the complexities of the digital transformation of tax, with complete, connected offerings for tax determination, continuous transaction controls, tax reporting and more. Sovos customers include half the Fortune 500, as well as businesses of every size operating in more than 70 countries. The company’s SaaS products and proprietary Sovos S1 Platform integrate with a wide variety of business applications and government compliance processes. Sovos has employees throughout the Americas and Europe, and is owned by Hg and TA Associates.
Share This Post

North America Sales & Use Tax
June 5, 2023
Sovos Onboarding: 6 Departments Dedicated to Customer Success

If you are evaluating Sovos, we want you to understand expectations for the customer experience and what teams are there to support you. At Sovos, we have a range of teams ready to support you from the day you sign a contract. Whether it be a customer success representative to review the value you are […]

North America Sales & Use Tax
June 1, 2023
3 Things to Remember if You Get a Sales Tax Notice

Have you ever received a sales tax notice from a state department of revenue? Whether you answered yes or no, there are important things to keep top of mind to help keep your business prepared. Finding out that you have failed to comply with one or more of your sales tax obligations can be startling. […]

EMEA VAT & Fiscal Reporting
May 31, 2023
Bizkaia: What is Batuz LROE?

The Ledger of Economic Operations (Libro Registro de Operaciones Económicas), also known as LROE, is a main compliance element of the Batuz tax control system. This system is under implementation in the province of Bizkaia, located in the autonomous Basque community in Spain. Taxpayers under the Batuz mandate must comply with both TicketBAI and LROE […]

North America Unclaimed Property
May 30, 2023
How to Set Up a Successful Unclaimed Property Program

Unclaimed property compliance can be difficult and overwhelming. Clients often ask what they should be doing to ensure they are compliant with the various laws and regulations. It isn’t easy, especially if you have multiple property types such as checks, credits or customer accounts that have the potential to become unclaimed property in multiple states. […]

North America ShipCompliant
May 30, 2023
How Hold At Locations Improve Your Customers’ Wine Delivery Experience

Direct-to-consumer shipping wine lovers enjoy the convenience of having their favorite vinos shipped to their front door. But what happens when, for whatever reason, they aren’t available to accept their wine deliveries? Whether they aren’t available during the day or they don’t have someone 21 or older available to sign for their package, these challenges […]