Five VAT Solutions for Becoming VAT Compliant, Recover VAT
By Space Coast Daily // February 14, 2019
With more, experienced and cost-effective Value Added Tax (VAT) solutions providers around, you can now make VAT recovery, compliance, and related problems a thing of the past.
VAT is a transactional, consumption-based tax system that supplies as much as 21% of the European Union governments’ total revenue. Since its first introduction, VAT is imposed in about 160 countries globally.
And even in the countries outside the EU, VAT revenue provides governments with a huge chunk of revenue together with the likes of stamp duty and income tax.
But VAT accounting, VAT compliance and related calculations are arduous undertakings. In fact, VAT calculations are so complex, time-consuming and often erred that many companies either overpay or underpay VAT.
According to an Accenture report, VAT systems account for about 32% of the time taken to comply with tax legislation hence the need to use efficiency-boosting VAT solutions.
The cumbersome nature of VAT also presents a problem when it comes to curbing tax evasion, narrowing VAT gaps, and more, according to a 2018 VAT Gap Report focused on the EU’s 28 member states.
So, what VAT solutions can you seek to ensure you are not only VAT compliant but are also not paying more VAT than you should, including identifying opportunities for recovering reclaimable VAT?
The VAT Support Services to Kickstart Your VAT Compliance and Recovery Plan
Here are the fundamental ones to implement first.
VAT Registration Assistance
Know how to kickstart your VAT compliance journey, the procedure to take, your rights as well as your obligations as a registered VAT payee?
A professional and experienced VAT solutions service can help you there. In particular, it can help you claim reclaimable VAT on purchases you made for your business up to 4 years before you VAT registration for goods and up to 6 months for services.
Choosing the Most Ideal Scheme
You want to use a cost-effective mechanism for becoming VAT compliant no matter where you are. But considering each of the available options all on your own can prove overwhelming and time-consuming, and still produce less than friendly results for you.
An experienced expert with intrinsic knowledge of various domestic and foreign schemes and how both apply in your case can help you earn more in VAT refunds without conflicting various tax laws.
VAT Planning and Administration Advice
This refers to examining current VAT compliance status in comparison with tax laws and VAT reclamation procedures in your area. Then taking a proactive approach to improving your VAT compliance to not only avoid a mandatory audit but to also make VAT accounting simpler, trackable and easy to recover in case of an overcharge.
Preparing VAT Returns
Tax laws require businesses to file VAT returns in time every time. Doing so goes a long in ensuring you safeguard your operations from penalties and applicable lawsuits. Boutique VAT solutions providers typically combine VAT recovery and VAT returns preparations in tow, setting your accounting team free to become more productive elsewhere in your business.
VAT Control and Reconciliation
We found that as many as 35% of business travel and entertainment expense invoices have incomplete or missing information. That can make it tough for a business to reclaim VAT on such invoices hence unable to control and reconcile their VAT expenditure with potential VAT savings despite the possibility.
Over to you. What challenges could you be facing in your quest to become VAT compliant, improving VAT recovery, and getting VAT solutions that work for your specific industry or needs?
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