Trends in Continous Global VAT Compliance (Sovos Report Extract)

Trends in Continuous Global VAT Compliance

Foreworded by Christiaan van der Valk, Vice President of Strategy, Sovos

This 11th edition of Trends in Continuous Global VAT Compliance reflects almost two decades of experience from an international group of experts in VAT compliance.

In keeping with emerging requirements as continuous transaction controls (CTCs) sweep around the world, the scope of this edition has been broadened to address not only e-invoicing and e-archiving compliance, but also the critical adjacent areas of value-added tax (VAT) reporting and tax determination.

As will be clear from the long list of country requirement summaries in the second half of this document, we have come a very long way as an industry that almost two decades ago started timidly with PDF and EDI invoices as tax originals in Europe and a few other countries. At that time, there were no good practices – neither for businesses nor for governments. EU tax authorities didn’t always know precisely how to operationalize the e-invoicing rules of the VAT Directive. For years, businesses and service providers built on those foundations until – more or less overnight, starting in Latin America – tax authorities started their own digital transformation. And as this report shows, this “other digital transformation” is profoundly impacting how companies operate and comply with law.

And yet, the end of this revolution caused by varying forms of tax digitalization is not yet in sight. Many countries around the world have just started their individual journeys toward CTCs, and countries that have had them for many years continue to add new features – both to further close VATgaps and to add interoperability and economic bene ts
to the foundations they have built.

Another enhancement from previous editions is the expanded section with concrete advice for businesses. Many companies – in particular multinational corporations – feel lost among the rapid succession of CTC mandates around the world and do not know how to avoid painting themselves into a costly and perilous corner by using a multitude of diverse local solutions. In working with such companies and their solution providers every day, we know how important it is forresponsible executives to help all a ected corporate functionscooperate toward a coherent approach that turns CTCs into an advantage instead of a risk.

With the increasing intensity and diversity of CTC regulation, the challenges that international companies face may well be among the most onerous in history. This report aims toprovide clear, actionable advice to nd workable solutionsamid this mind-boggling complexity. We wrote this document to help business leaders take pragmatic steps to manage the risks and maximize the opportunities of the CTC revolution. We stand ready to help businesses and solution vendors to achieve optimum results.

What’s in the Report:

  • VAT and its challenges
  • A brief history of VAT digitization
  • The chaotic global migration to CTCs
  • The CTC conundrum of international companies
  • A primer on CTCs with a focus on clearance
  • Granular analysis 57

Country Profiles

  • Europe: Toward CTCs in the European Union
  • B2B e-invoicing
  • B2G e-invoicing
  • Periodic VAT reporting in the EU
  • EU country profiles
  • Electronic invoicing and VAT reporting in the other European countries
  • Electronic invoicing and reporting in North America
  • Electronic invoicing and reporting in Latin America
  • Electronic invoicing and reporting in Africa
  • Electronic invoicing and reporting in Asia Pacific

This extract is sponsored by Esker Australia

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