Countries around Europe, anxious to close stubborn VAT revenue gaps running to €150 billion ($170.5 billion) per annum are rapidly imposing digital transaction reporting in its place.
The newest regimes include live VAT invoice and approval submissions to the tax authorities. Poland has already announced the scrapping of VAT returns in 2019, relying on monthly, detailed VAT transaction submissions instead.This is placing huge pressures on businesses of all sizes to upgrade their accounting systems. But also to tighten their VAT determination processes since tax authorities will now have live access to taxable transactions ahead of any current month-end review and correction process.
This puts businesses on the back-foot when tax authorities are able to check and calculate VAT liabilities in real-time rather than waiting on company-sanitised self-assessment returns.
Avalara’s latest digital VAT reporting guide provides an overview of the progress of the pioneering countries. Click here to download the guide.
© 2019 Euromoney Institutional Investor PLC. For help please see our FAQ.