- Technology is changing business models and tax compliance, requiring adaptation to new rules.
- Both SMEs and large companies need to modernize VAT compliance strategies.
- Digital transformation can simplify compliance and support business growth.
- The digital era presents challenges like new regulations and mandatory e-invoicing.
- The EU VAT in the Digital Age reform aims to modernize VAT reporting and combat fraud.
- E-commerce growth complicates VAT obligations due to cross-border sales.
- Stricter rules are imposed on foreign sellers to protect VAT revenue.
- Compliance involves managing various VAT rates and registration thresholds.
- Filing and payment requirements vary by country, posing challenges for taxable persons.
- Digital transactions generate large data volumes, requiring accuracy and security.
- Real-time data monitoring and communication with tax authorities are essential.
- Technologies like tax engine software automate VAT calculations and reporting.
- Tax engine software integrates with ERP systems to enhance efficiency and reduce errors.
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
