'Brexit' is it already time to act

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Relax, the VAT law will probably not change in the next 2 years. The UK must first give the European Council notice of its intention to withdraw and a 'Brexit' agreement has to be negotiated.

More attention for VAT is expected

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The Big Four auditors emphasize in their Indirect Tax Surveys the increasing risks of assessments, fines, and reputational damage, as the importance of indirect tax amounts flowing through the accounts is increasing, and the KPIs and effective monitoring missing for indirect tax.

VAT findings for benchmarking

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Benchmarking exercises against trends in the indirect tax market can be done via global surveys that capture info on tax function, attitudes and priorities. These surveys are useful as they give insight into what others are facing or have faced and how you could improve yourself.

Legal and technical changes for SII files in Spain

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On 1 July 2018, the Spanish SII system changes. Several technical modifications become in force.

Higher on the CFO's agenda

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The importance of indirect tax has increased over the last couple of years. While the rates for direct tax, corporate income tax, are decreasing, the rates for indirect tax keep rising. Time for Richard Cornelisse, editor of Global Indirect Tax Management, to act on that: ‘At multinational companies we’re easily talking about amounts of over 5 billion euros of indirect tax flowing through the books. Yet according to big4 surveys, the related control mechanisms are still inadequate. Not only can an error in the accounts lead to major additional tax assessments and substantial penalties, with amounts like these, it can be devastating for the reputation of a listed company.’

When expertise is needed upfront

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The tax function should ascertain proper implementation and determine the impact of changes in businesses, laws and regulations on implemented tax planning. Getting ahead of possible problems at the planning stage before they arise in practice is one critical way to make sure that the company reaps the benefits. When the business model changed as a result of the implementation of a centralized procurement model, this could create not only VAT risks, but commercial risks as well. 

Commission develops TNA software to identify fraudulent networks

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To speed up the joint processing and analysis of data within Eurofisc, the Commission is currently developing TNA software for voluntary use by the Member States as of 2018.

About SAF-T and e-invoicing - country specific methods without harmonization

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Tax administrations use technology to improve tax audit effectiveness as combating VAT fraud is a high priority. Digitalization of tax is a trend, so more countries will follow soon. Every jurisdiction has its country-specific way and tax requirements. Countries have implemented e-invoicing with (almost) real-time electronic data submission or SAF-T based methods.

In Spain on 1 July 2017: immediate supply of Information to tax authorities in force

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In Spain a new VAT reporting system will enter into force on the 1st of July 2017. The new Spanish requirements will have a huge impact on many (multi)nationals that run SAP.

Being ready for GCC VAT introduction when operating SAP

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The Governments of the Gulf Cooperation Council (GCC) - Bahrain, Kuwait, Oman, Qatar (status unknown due to GCC politics/friction), Saudi Arabia and the United Arab Emirates that make up GCC - are committed to form a common framework for the introduction of value added tax (VAT) in the region. In order to achieve conformity within the GCC, it is anticipated that the six member states will all aim for implementation of VAT during the period commencing 1 January 2018 or by the end of 2018.

SAP End-to End solution for periodic SII files in Spain

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In Spain a new VAT reporting system will enter into force on the 1st of July 2017.

Best in class data analysis for VAT

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Tax Authorities, due to technological innovations, have become increasingly better in executing their tax audit. The probability that the Tax Authorities will issue additional assessments and penalties in the near future because errors in indirect tax are detected, increases by the day. Analytics could also increase a company's efficiency and gain strategic insight. What is needed for best in class data analysis for VAT?

SAP - submitting close to real time data to tax authorities

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The Italian, Polish, Lithuanian and Spanish authorities passed a series of measures aimed at detecting and combating tax fraud. The aim is to get close to real-time information of company transactions, which will allow the tax authorities to perform a more efficient tax audit and reduce processing time. Companies face business challenges to implement these new requirements.

How does VAT actually work

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The Value Added Tax, or VAT, in the European Union is a general, broadly based consumption tax assessed on the value added to goods and services. It applies more or less to all goods and services that are bought and sold for use or consumption in the Community.

Statistical sampling: quantify tax risks

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In order to quickly gain insight into the level of tax risks (i.e. calculation of the potential assessment), statistical sampling can be used. By selecting a few elements (euros), the reliability of the composition of tax items can be determined to a high degree of certainty, and on the basis of identified errors in the sample, the exact amount of additional tax assessment can be calculated.