All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

Are indirect taxes putting finance teams under pressure?

Sponsored by tmf-grouplogo.jpg
The Global Guide to Indirect Taxes spotlights 12 key jurisdictions

Emine Constantin discusses TMF Group’s ‘Global Guide to Indirect Taxes’, which helps address compliance concerns.

It is not surprising that indirect taxes are putting finance teams under pressure considering how rapidly laws can change in any one country, let alone when personnel are responsible for the tax management of international operations.

Do you have the in-house resources to properly track and implement new rules and requirements, or are you leaving your business open to compliance breaches, penalties and lost cash flow?

The Global Guide to Indirect Taxes spotlights 12 key jurisdictions. TMF Group’s in-country tax experts answer eight essential questions to help minimise risk and highlight the legislative challenges and opportunities that exist when doing business internationally.

The guide also provides you with a global overview of what indirect tax type (VAT, GST or sales tax) applies where.

From knowing whether your business needs to be tax registered in a certain jurisdiction to import taxes and duties – businesses should review and optimise their supply chains for potentially significant cost savings.

For example, some jurisdictions allow for the deferral of import VAT which is advantageous to mitigate the impact of negative cashflow. Notable purchases made in certain jurisdictions may be subject to VAT which can be claimed back. With VAT rates in the EU between 17% and 27%, this can lead to considerable savings.

The COVID-19 pandemic triggered numerous short-term indirect tax changes. Notably, extended deadlines, deferrals of liability payments and an emergency reduction of VAT rates – particularly for the hospitality sector. While this has brought temporary relief for businesses in cashflow terms, it has also required rapid enterprise resource planning (ERP) system amendments. 

Now that the UK has officially left the EU, we are beginning to see the ramifications of the country’s new classification as a third country for the import and export of goods and services.

The contents of this guide will help to address your compliance concerns while at the same time boost your understanding of cost reduction opportunities.

 

Emine Constantin

Head of accounting and tax, TMF Group

E: contact@tmf-group.com

 

More from across our site

Multinational enterprises run the risk of hefty penalties if the company in question fails to register for VAT when providing electronic services in South Africa.
Tax directors have urged companies to ensure they have robust tax risk management controls when outsourcing tax functions.
Japan reports a windfall from all types of taxes after the government revised its stimulus package. This could lead to greater corporate tax incentives for businesses.
Sources at Netflix, the European Commission and elsewhere consider the impact of incoming legislation to regulate tax advice in the EU – if it ever comes to pass.
This week European Commission officials consider legal loopholes to secure minimum corporate taxation, while Cisco and Microsoft shareholders call for tax transparency.
The fast-food company’s tax settlement with French authorities strengthens the need for businesses to review their TP arrangements and documentation.
The full ALP model will be adopted through a new TP regime, which is set to boost the country’s investments and tax certainty.
Tax professionals have called on the UK government to reconsider its online sales tax as it would affect the economy at the worst time.
Tax professionals have called on companies to act urgently to meet e-invoicing compliance targets as the EU plans to ramp up digitisation.
In the wake of India’s ambitious 25-year plan for economic growth, ITR has partnered with leading tax commentators to discuss what the future will look like for India and for the rest of the world.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree