Project Plan for Migration To New Jurisdictions

See Section Indirect Tax Considerations: Migration To New Jurisdictions ?

Migration to a new jurisdiction will inevitably involve dealing with VAT. For some migrating corporations it may mean having to deal with VAT.

The change of a business model can create not only VAT risks, but as well commercial risks such as logistics problems in getting goods into a country and delays and hold off of shipments resulting in disruption of daily business. Some root causes: the company forgot to register for VAT or procurement forgot to agree with supplier who was importing the goods.

Implementation

Once a commercial and tax-efficient structure is determined—one that addresses both historical and potential risk—it is time to take the theory behind the structure into the realm of practice.

Who is taking care of filing VAT registrations? When should you apply for VAT registration, since average lead times in jurisdictions can be several months? Who is responsible for maintaining a structure and making sure the business is acting in accordance with the model? How is this communicated throughout the organization? How will ongoing monitoring be handled?

Are you as Indirect Tax Function timely involved to properly plan and execute?