Communicating with multiple VAT agents is frustrating and inefficient. On the other hand, adopting a digital centralised portal will transform your company’s VAT compliance process. It’s one elegant platform for all your global VAT compliance obligations.
The multiple VAT agent solution
VAT compliance becomes more complicated once a business operates in multiple countries. That’s fairly obvious from a regulatory point of view: different jurisdictions have different rules and VAT compliance procedures, and you need to be on top of all of them.
It’s equally true from an administrative and logistical perspective. Collating all relevant documentation and submitting them in the correct format to your local tax office is burdensome enough. Once you have to deal with multiple tax offices, each with their own filing requirements, potentially operating in an unfamiliar language, compliance becomes an administrative nightmare.
A common solution is to appoint a VAT agent in each jurisdiction in which you have a VAT compliance obligation. That’s certainly an effective way to ensure you have someone on the ground who understands local requirements. However, such a decentralised process does little to resolve the administrative complexity of multi-jurisdiction compliance.
The upshot: more time spent by your staff on unproductive administrative work. It also leaves you open to compliance failures due to human error or accidents of technology.
There’s a much better way. Powerful VAT technology makes multinational VAT compliance much more effective. To understand why, let’s consider the practical realities of staying compliant.
Tedious liaisons: Communicating with multiple VAT agents
Let’s consider a scenario. Your business successfully sells a high volume of goods to customers in various countries. You are obligated to register for VAT in each.
So you appoint a VAT agent in each jurisdiction. They’ve all mastered the local regulations and have a good working relationship with the local tax office. You can rely on them to submit the documents you provide correctly and on time.
But first your staff need to collect all the relevant documents, taking pains to ensure nothing is missed. You may have to consult each agent in turn for local advice.
Once you’ve collated all the documentation, you need to submit each tranche of documents to the relevant tax agent. That probably means sending multiple emails with attachments or digital transfers to multiple people.
How do you ensure each relevant item of correspondence has been received. Do you make a follow up call? Do you wait for a confirmation email?
Moreover, attachments get missed all the time. The most urgent emails have a habit of going directly to the spam folder. You can try sending a zip file full of documents and hope the person on the other end processes them correctly.
Then there’s the linguistic barrier. Maybe your Estonian agent’s English isn’t fluent. Your Estonian is even worse. When things get complicated, important details can be missed.
Ultimately, tax offices aren’t going to care that you left out an attachment or that your VAT agent didn’t look in her spam folder. If you fail to meet compliance requirements, you’re liable to suffer penalties.
Automation makes it all easier – and eliminates mistakes
Now suppose that instead of communicating with multiple personnel along multiple channels, you had access to a unified integrated portal.
Filing would therefore become exponentially simpler. You would now be able to submit all required documents in one seamless, secure upload.
A centralised VAT compliance solution
That’s precisely why Vatglobal developed vfile. The cloud-based portal integrates with your existing accounting system to automatically import sales and purchase data.
The intelligent system error-checks all the documentation to flag potential errors, saving you from compliance issues down the line.
Moreover, you no longer need to fear the spam folder. Your employee’s are less burdened by administration. Human error is no longer a serious concern.
It’s an elegant technological solution to the problem of multi-state VAT compliance. Get in touch with Vatglobal to organise a demo of the vfile system or to trial the system for free.