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
