Page 2 of 2: The total amount of VAT managed
To secure adequate support from senior management, it's essential to assess the monthly and quarterly VAT/GST working capital requirements and, if possible, quantify any input tax leakage. Goals should minimize cash savings, interest costs, penalties, tax expenses, and audit assessments, while maximizing recoverable amounts. These objectives should align with the key performance indicators (KPIs) that senior management values.
Indirect tax often receives insufficient attention, as senior management concentrates more on direct taxes. To change this perception, the VAT throughput, representing the total amount of VAT managed, can be calculated using figures from the company’s annual report. This information should be communicated internally to emphasize the significance of indirect tax compliance and its potential financial implications.