- Shift to Real-Time Data Reporting: The global movement towards continuous tax compliance is being driven by advancements in technology and the requirement for real-time data reporting. Countries like Lithuania, Romania, and Hungary are implementing systems that utilize transactional data to pre-fill VAT returns and identify discrepancies, thus enhancing tax compliance and reducing fraud.
- Impact on Business Operations: Continuous compliance will necessitate significant changes in tax teams’ workflows and technology needs, requiring businesses to ensure accurate, high-quality data and adopt unified platforms that facilitate end-to-end compliance. Companies must also focus on automating manual processes and improving data quality to adapt to these new demands effectively.
- Best Practices for Implementation: To successfully navigate the transition to continuous compliance, businesses should prioritize investing in scalable and flexible technology solutions, form cross-functional teams to manage the transition, and learn from industry peers about effective strategies and common challenges. Emphasizing accuracy and integration across systems will be crucial for meeting compliance requirements in this evolving landscape.
Source Fonoa
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