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VAT/GST Risk Management

VAT/GST Risk Management

Combating VAT Fraud Through Machine Learning and Predictive Artificial Intelligence

Using artificial intelligence (AI) to combat VAT fraud, the European Parliament urges the European Union to expedite its AI initiatives to protect the EU budget, particularly in the fight against VAT-related fraud. In a recent resolution, the…

VAT/GST Risk Management

Navigating Self-Billing Legal Requirements in the EU: Ensuring Compliance and Transparency

Self-billing is a practice in which a buyer generates an invoice for goods or services received on behalf of a supplier. This process is commonly used in business-to-business transactions and can offer benefits such as streamlined invoicing and…

VAT/GST Risk Management

VAT GST rewards

Optimizing VAT recovery, working capital efficiency: cost and cash flow benefits Overall, business strategies nowadays focus on: Release cash Reduce costs by reducing complexity, lowering cycle time, minimizing defects and errors, etc. …

VAT/GST Risk Management

Tax penalties can emerge in several scenarios if VAT regulations are overlooked

Tax penalties can occur in various situations when there is a failure to comply with VAT regulations. Here are several scenarios that may result in the imposition of tax penalties due to non-compliance with VAT rules: 1. Late Submission of VAT…

Key Trends in VAT Landscape

VAT/GST Risk Management

Key Trends in VAT Landscape

The Value Added Tax (VAT) landscape is rapidly evolving across different jurisdictions, leading to several key trends. Here are some noteworthy developments: 1. **Digitalization and E-Invoicing**: An increasing number of countries are adopting…

E-invoicing and VAT a global trend

VAT/GST Risk Management

E-invoicing and VAT a global trend

E-invoicing, or electronic invoicing, represents the digital exchange of invoices between buyers and suppliers, typically utilizing standardized formats. This system has gained significant traction globally, especially in the realm of Value Added…

Standard Audit Files for Tax and the Trend of Digital Tax Auditing

VAT/GST Risk Management

Standard Audit Files for Tax and the Trend of Digital Tax Auditing

Standard Audit Files for Tax (SAF-T) are standardized electronic formats designed to facilitate the exchange of tax-related data between businesses and tax authorities. This initiative aims to simplify the auditing process, enhance tax compliance,…

VAT/GST Risk Management

Why VAT is important

VAT (Value Added Tax) risks can significantly affect businesses operating within complex tax environments. Understanding these risks is crucial for ensuring compliance and optimizing tax management strategies. Here are some common examples of VAT…

VAT/GST Risk Management

VAT GST risks

Unexpected costs are high and ‘above the line’ Measuring risks is often based on the balance between output and input VAT, not the total VAT/GST throughput (also called ‘VAT under management’). The findings listed above are not surprising, as…

VAT/GST Risk Management

Incorrect VAT numbers

It is possible to check the syntax – the format of the VAT number, including the number of positions. However, it is not possible to check whether the VAT number is valid. To this end, the European Commission has provided an online database, VAT…

VAT/GST Risk Management

VAT determination of incoming invoices

Tax determination for VAT on incoming invoices is a critical process for businesses to ensure compliance with VAT regulations, accurately account for tax liabilities, and optimize input VAT recovery. This process involves determining how much VAT a…

VAT/GST Risk Management

Components of Tax Risk Management

Identification of Tax Risks Organizations must identify potential tax risks within their operations and transactions. These risks can arise from various sources, including: Regulatory Changes: Modifications in tax legislation or interpretations…