- Introduction of the Classification Matrix: The CIAT has published Version 1.0 of the Classification of Indirect Tax Controls, designed to help stakeholders navigate the complexities of international transactional tax reporting.
- Guide to Diverse Systems: The matrix serves as a pathway through the various models of digital indirect tax controls, helping to highlight similarities and differences among the systems used globally.
- Challenges of Standardization: Christiaan van der Valk emphasizes the difficulty of standardizing tax and government digitalization initiatives due to the varied interpretations of terms like “e-invoicing” across different regions and regulatory environments.
- Facilitating Dialogue: The matrix aims to establish a foundation for productive discussions among taxpayers, tax administrations, and service providers, facilitating better alignment and understanding of indirect tax controls.
- Living Document: As a dynamic resource, the matrix will be regularly updated to reflect changes and incorporate feedback from stakeholders, ensuring it remains relevant and useful in the evolving landscape of tax compliance.
Source Christiaan Van Der Valk
About the initiative
- New Initiative Overview: The Digital Dialogue (DD) initiative serves as a continuation of a previous effort by the International Chamber of Commerce, providing a platform for private companies and tax administrations to exchange best practices and ideas related to Continuous Transaction Controls (CTC).
- Leadership: The initiative will be chaired in its initial years by Christiaan Van der Valk, Ana Mascarenhas, and Alexander Kollmann, guiding discussions on digitalization and tax compliance.
- Digitalization Matrix: The DD has developed a Digitalization Matrix and Classification Matrix for Indirect Tax Controls to categorize different approaches to electronic invoicing and transaction monitoring, reflecting the diversity of systems implemented across various jurisdictions.
- Harmonization of Approaches: Recognizing the challenges of establishing a single standard due to varying legal frameworks and cultural contexts, the DD aims to create common ground for discussions among taxpayers, tax administrations, and service providers on continuous transaction controls.
- CTC Classification Matrix: The proposed CTC Classification Matrix distinguishes between taxpayer obligations to tax administrations (reporting vs. clearance models) and outlines various methods for exchanging information, from unregulated exchanges to complex multi-party systems involving specialized service providers.
Source CIAT
Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
