Factors to consider when managing VAT compliance and auditing
For multinational companies, VAT compliance is complex and challenging ― and returns can differ greatly from country to country, making it difficult to determine which transactions need to be reported. Adding to the complexity, the detailed rules for each country are often only available in local languages.
Learn how a modern VAT compliance application can pull data from ERP systems and/or other sources to generate signature-ready returns and ledgers, deliver transparency in case of queries, and provide a full audit trail and storage of final documents in both English and native languages. Check out this infographic for details:
The top 5 VAT compliance challenges
Managing VAT compliance within your organization can present many challenges. VAT returns significantly different between countries, including issues around EC Sales Lists (ESL) and Instrat as well as different filing times. And when creating VAT compliance processes, many companies still operate using manual spreadsheets — some centralized, some fully decentralized or outsourced to third-party providers. Due to different teams having partial responsibility and sometimes limited VAT knowledge, this process is prone to error.
How automated tax technology can address VAT challenges
Automation saves time and reduces the risk of errors by eliminating manual data entry and regular software updates to ensure the company is up to date with the latest forms and VAT filing obligations. These solutions can provide full audit trails and storage, ensuring absolute filing clarity.