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Tag: VAT Control Framework

Global - Elevate your VAT/GST control framework

Global - Elevate your VAT/GST control framework

A robust VAT Control Framework is vital for navigating today’s regulatory complexities.

Elevate Your VAT Control Framework to the Next Level

Elevate Your VAT Control Framework to the Next Level

A solid tax control framework offers benefits such as: Insights into VAT risk vulnerabilities Clear definition of acceptable risk levels Implementation of controls for significant risks. A VAT Control Framework is an internal control tool…

Standard Audit Files for Tax and the Trend of Digital Tax Auditing

Standard Audit Files for Tax and the Trend of Digital Tax Auditing

Standard Audit Files for Tax (SAF-T) are standardized electronic formats designed to facilitate the exchange of tax-related data between businesses and tax authorities. This initiative aims to simplify the auditing process, enhance tax compliance,…

E-invoicing and VAT a global trend

E-invoicing and VAT a global trend

E-invoicing, or electronic invoicing, represents the digital exchange of invoices between buyers and suppliers, typically utilizing standardized formats. This system has gained significant traction globally, especially in the realm of Value Added…

Key Trends in VAT Landscape

Key Trends in VAT Landscape

The Value Added Tax (VAT) landscape is rapidly evolving across different jurisdictions, leading to several key trends. Here are some noteworthy developments: 1. **Digitalization and E-Invoicing**: An increasing number of countries are adopting…

Tax penalties can emerge in several scenarios if VAT regulations are overlooked

Tax penalties can emerge in several scenarios if VAT regulations are overlooked

Tax penalties can occur in various situations when there is a failure to comply with VAT regulations. Here are several scenarios that may result in the imposition of tax penalties due to non-compliance with VAT rules: 1. Late Submission of VAT…

How is a Business Control Framework connected to Tax Control Framework

How is a Business Control Framework connected to Tax Control Framework

A Business Control Framework (BCF) is a comprehensive system organizations utilize to ensure their operations are efficient, effective, and compliant with legal and regulatory requirements. It provides a structured approach to managing risks,…

A straightforward breakdown of Sarbanes-Oxley Act

A straightforward breakdown of Sarbanes-Oxley Act

The Sarbanes-Oxley Act of 2002 (SOX) is a U.S. federal law created to prevent corporate fraud and protect investors. It was passed in response to massive accounting scandals (like Enron, WorldCom, and Tyco) where companies lied about their financial…

Tax Risk Management: An Overview

Tax Risk Management: An Overview

Tax risk management is a crucial process through which organizations identify, assess, and mitigate the risks associated with tax compliance and reporting. This involves developing strategies to minimize exposure to financial penalties, legal…

Tax audit defense

Tax audit defense

Preparing for Tax Audits: A Strategic Approach Tax audits can be both time-consuming and resource-intensive, often requiring significant input from internal teams and external advisors. To mitigate the impact of an audit, it is essential to…

VAT Control Framework: Transitioning from Concept to Implementation

VAT Control Framework: Transitioning from Concept to Implementation

Critical Conditions for Success The significance of indirect tax has escalated recently. While the rates for direct taxes, such as corporate income tax, are decreasing, indirect tax rates continue to rise. For multinational companies, this can mean…

VAT determination of incoming invoices

30 November 2014

VAT determination of incoming invoices

Tax determination for VAT on incoming invoices is a critical process for businesses to ensure compliance with VAT regulations, accurately account for tax liabilities, and optimize input VAT recovery. This process involves determining how much VAT a…

Quantification of tax risks via statistical sampling

Quantification of tax risks via statistical sampling

Sampling involves selecting a portion of the total population of available data, particularly when evaluating the entire population would be too costly or time-consuming. To ensure effective sampling, it is crucial that the selected sample is…

Strategies, approaches and models

Strategies, approaches and models

Strategies, Approaches, and Models A comprehensive tax strategy should encompass all applicable taxes and key business locations, ensuring alignment with the overall business strategy. The tax strategy document must also include guidelines for…

Why VAT is important

27 November 2013

Why VAT is important

VAT (Value Added Tax) risks can significantly affect businesses operating within complex tax environments. Understanding these risks is crucial for ensuring compliance and optimizing tax management strategies. Here are some common examples of VAT…

Incorrect VAT numbers

04 November 2013

Incorrect VAT numbers

It is possible to check the syntax – the format of the VAT number, including the number of positions. However, it is not possible to check whether the VAT number is valid. To this end, the European Commission has provided an online database, VAT…

VAT control framework

04 November 2013

VAT control framework

There are a couple of elements that need to be considered to determine the materiality of VAT risks. Using absolute amounts is the way a business controls framework sets up a risk-based approach. However, this is not sufficient as a VAT…

SAP VAT review

04 November 2013

SAP VAT review

An SAP review for VAT systematically evaluates how an organization manages its Value Added Tax (VAT) processes within its SAP environment. Given the complexities of VAT regulations and compliance requirements across different jurisdictions,…

Data analysis for SAP

04 November 2013

Data analysis for SAP

Digital tax auditing Due to technological innovations, tax authorities are becoming increasingly effective in conducting audits. The likelihood of these authorities issuing additional assessments and penalties for errors in indirect taxes continues…

VAT GST risks

04 November 2013

VAT GST risks

Unexpected costs are high and ‘above the line’ Measuring risks is often based on the balance between output and input VAT, not the total VAT/GST throughput (also called ‘VAT under management’). The findings listed above are not surprising, as…

VAT Under Management: An Overview

04 November 2013

VAT Under Management: An Overview

VAT Under Management refers to the strategic oversight, control, and optimization of an organization's Value Added Tax (VAT) processes. This concept includes all activities related to VAT compliance, reporting, recovery, and the overall management…

VAT GST rewards

04 November 2013

VAT GST rewards

Optimizing VAT recovery, working capital efficiency: cost and cash flow benefits Overall, business strategies nowadays focus on: Release cash Reduce costs by reducing complexity, lowering cycle time, minimizing defects and errors, etc. …

A VAT/GST strategic plan

04 November 2013

A VAT/GST strategic plan

A relevant VAT/GST tax strategy—correctly implemented—will allow the new business to function effectively from go-live, from both a tax and commercial perspective, so that it can move inventory, generate sales and invoices, face fewer disputes with…