A large number of taxpayers received incorrect charges or even fines in the Netherlands recently. State Secretary for Finance Hans Vijlbrief revealed that the problem was caused by a technical error due to the high rate of VAT submissions. According to Vijlbrief, the high number of VAT returns overwhelmed the computer system.
Computer glitch, human error
According to the account, when the system malfunctioned, tax authority personnel attempted to manually reset the system. At this point, human error occurred, leading to thousands of taxpayers receiving erroneous penalties. Some of the penalties amounted to thousands of euros.
Vijlbrief confirmed that a total of 37,700 taxpayers were affected. He added that the government will implement a new, more robust, software system.
The value of a VAT expert on the ground
VAT compliance is complex at the best of times. Businesses need effective processes to ensure they file complete and accurate VAT returns within the specified deadlines.
However, as the Dutch case demonstrates sometimes glitches occur. In this case, taxpayers submitted their VAT returns correctly and on time and nonetheless received notification that they were noncompliant.
Fortunately, authorities recognised the problem and are taking steps to rectify the glitch.
In other cases, businesses may not be so fortunate. Small businesses and independent entrepreneurs generally lack the technical and legal expertise to dispute errors or query demands.
Outsourcing your VAT compliance to a specialist, with local agents on the ground, is therefore an extremely effective way to prevent problems and troubleshoot errors.
Seamless VAT compliance in the Netherlands and beyond
Vatglobal’s technology-driven VAT compliance solution ensures that meeting your VAT obligations is simple, fast and efficient, everywhere you have an obligation. And our expert team is always on hand to answer queries, provide strategic guidance and troubleshoot problems. Get in touch with Vatglobal for a simple solution to the complex problem of global VAT compliance.