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As a part of the Golden Tax System, the well-known tax administration system in China, the Third Stage of this system named ‘Golden Tax III’ has been fully implemented for more than a year. The goal of this stage is to establish a consistent tax administration backed by information technology and to enable highly efficient […]

In theory, VAT collection should be a neutral event for companies, since the tax is born and paid for by the consumer. However, with a significant value of taxes passing through your company, VAT can be a major liability if it is not claimed, collected and settled properly. Companies often view VAT as nothing more […]

Businesses across Europe have been so focused on updating their processes and technologies to ensure they can transmit data under new VAT compliance and reporting regulations that they are often overlooking an important piece of the puzzle: reconciliation. VAT regulations are becoming more complex, with businesses being required to report and share detailed transactional data, […]

International News European Commission Backs Italy’s E-Invoicing Mandate On February 5, 2018, the European Commission backed Italy’s e-invoicing mandate by recommending the EU Council approve Italy’s derogation request from the EU VAT Directive. By way of background, Italy’s mandate (which would become effective in two stages starting on July 1, 2018) requires taxpayers to provide, […]

One of the key challenges within e-invoicing is to keep your processes and systems compliant at all times. Guaranteeing compliance is not easy. As we say here at Sovos, “regulation constantly evolves; VAT requirements are moving targets and there is no such thing as being half compliant”. One of the biggest mistakes enterprises make is […]

Finding potential errors or missing data before filing VAT forms is essential to efficient VAT compliance and reporting, but this process is often left to manual, random and selective processes. These ad hoc data checks simply aren’t enough when it comes to ensuring accurate VAT compliance in a changing regulatory landscape requiring real-time data sharing […]

Tax evasion is a costly problem that has impacted virtually every Latin American country. According to the Economic Commission for Latin America and the Caribbean (ECLAC), which looked at studies of evasion rates, tax non-compliance cost countries an estimated US $340 billion in 2015. To combat this issue, governments across Latin America and around the […]

Brazil, Chile, Mexico and other Latin American countries have been on the bleeding edge of technology-driven value-added tax (VAT) initiatives for more than a decade. These countries have set the stage for similar compliance and reporting requirements that are now sweeping across more than 30 European countries. Businesses operating in Europe have a distinct benefit. […]

When European or American companies talk about Europe increasingly adopting VAT reporting solutions based on the OECD SAF-T standard, they are mostly showcasing their ignorance of the revolution in tax controls that is really brewing. Europe is playing catch-up with many other parts of the world which are utilizing the Internet and associated technologies to […]

In the complex and ever-changing landscape of VAT Compliance and Reporting, automation is critical to drive operational simplification, cost reduction, audit risks mitigation and capability acquisition. “Routine tasks do need to be automated, but for the purpose of freeing up people to explore new approaches to create even more value.” This statement from a June […]

International News European Commission Proposes Changes to VAT Regime On January 18, 2018, the European Commission proposed an overhaul of the European VAT System, building on the 2016 VAT Action Plan. The main goal of the proposed changes is to create a European VAT area that operates more efficiently in a globalized world and aids […]

As tax authorities move to technology-driven value-added tax (VAT) reporting requirements, businesses operating in Europe will need to strap on their seat belts and prepare for turbulent times ahead, according to a new study by Sovos that examines the compliance-related disruptions that are sweeping across the globe. In the report – The Evolution of Value-Added […]

VAT compliance and reporting can place a major burden on IT teams. With customizations required for every jurisdiction, constantly changing regulations, necessary integrations with government portals and a variety of data submissions and reports required, compliance can quickly erode IT’s time for other projects and innovation. Constant fire drills are only the tip of the […]

Even though the year is just underway, 2018 is already bringing a flurry of activity around indirect taxation in the United Kingdom. While much of the detail still needs to be sorted, one thing is clear – significant compliance changes are on the horizon and companies operating in the UK will need to adapt. Specifically, […]

Having access to technologies that could render clunky, ineffectual relationships more seamlessly and organically does not mean that they will. As compliance automation professionals, we must play our part to make sure things evolve in the right direction. Can nature provide guidance? Definition: Biomimicry: the imitation of the models, systems and elements of nature for […]

As tax authorities in Latin America, and now Europe, adopt new eInvoicing and eAccounting initiatives, companies are realizing that SAP is not equipped to support the unique needs from country to country. When faced with this challenge, some companies either opt to manage compliance internally or move compliance outside of SAP, both of which are […]

Tax authorities in countries around the world are changing VAT compliance and reporting rules in an effort to minimize tax gaps, improve efficiency and accuracy, simplify auditing and ultimately achieve real-time visibility into companies’ operations. While every country is at a different stage in rolling out these initiatives and they all take slight different approaches, […]

International News EU Council Approves Overhaul of VAT System The Council of the European Union has adopted a legislative package that will substantially modify Europe’s VAT law from 2019. This package – consisting of a Directive and two Regulations – represents the first step towards enacting the European Commission’s 2016 Action Plan on VAT, which […]