The Four Emerging Megatrends in VAT

The 13th edition of our annual Trends Report puts the spotlight on current and near-term compliance requirements across regions and VAT compliance domains. With a focus on the four megatrends in VAT that businesses of all sizes and industries need to be aware of, it’s an essential read.

The four megatrends are:

  • Continuous transaction controls (CTCs)
  • Destination taxability for certain cross-border transactions
  • Aggregator liability
  • E-accounting and e-assessment

Download our infographic for an overview of these trends.

Sovos’ team of global regulatory experts help businesses prepare and respond to the digitization of tax. We focus our efforts on giving our customers peace of mind by simplifying the multiple layers of complexity, enabling them to focus on growing their business.

In our Trends Report we take a comprehensive look at the changing regulatory landscape as governments across the world are enacting complex new policies to enforce VAT mandates, obtain unprecedented insight into economic data and close VAT gaps.

Authored by our team of international tax compliance experts, Trends includes extensive guidance on how companies can prepare for and thrive through these changes.

Says lead author and vice president of strategy and regulatory at Sovos, Christiaan van der Valk, “Governments now have all the evidence and political support they need to drive aggressive programs towards digital resilience. We’re already seeing CTCs and other VAT digitization initiatives accelerate at unprecedented speed around the world. And the public authorities won’t stop there. At Sovos we’re convinced the coming decade will see the rapid introduction of real-time economies with always-on tax and the removal of barriers towards the trustworthy use of data in digital form across businesses, markets, government departments and countries. Businesses that can get their strategies right for CTC and other VAT programs will reap the benefits.”

The report also includes a major review of the country and regional VAT compliance requirements. These profiles provide a snapshot of the current and near-term planned legal requirements across the different VAT compliance domains that companies need to be aware of if they are to survive the paradigm shift that is taking place today.

Finally, the report examines how governments have embraced digital transformation to speed up revenue collection, reduce fraud and narrow VAT gaps. Digitization enables regimes to increase time to enforcement and enact much stricter protocols. As a result, companies are forced to react with more stringent processes of their own if they are to remain compliant.

Download the Report