Despite the fact that VAT compliance is an extremely administrative and complex process it can be managed inhouse. In fact, DIY VAT compliance has never been easier in a world that has so many digital platforms that offer efficient automation and integrations. Like everything, there are pros and cons to this too. This article explores the upsides and downsides of managing your VAT compliance inhouse.
How do you know if it’s time to make this decision?
Your business might have found itself in the position that it now requires more than one VAT registration. You might be a small business or a large multinational, when it comes to VAT compliance the standards, methods and rules apply to both. You can be a one-man Amazon etailer who has reached the sales threshold in 6 different jurisdictions or a global corporation expanding your reach into Europe. The requirements are the same either way. And you now have a decision to make on how you want to manage your VAT.
Choosing to adopt a DIY VAT compliance approach, means you’ll need the internal resources to manage it. Managing multiple jurisdictions will obviously require more resources than managing just one or two. But it is still possible (if you have the right technology to support your teams).
Inhouse VAT management & compliance
Most businesses may come to the point where it becomes necessary to build a central VAT team that is responsible for their multiple VAT registrations and the filing and reporting of their returns. It can be an effective model, but costly. You need to hire resources to do what is ultimately a very manual, repetitive process. Your team will also need to understand the local VAT laws and regulations in great detail and keep up with the constant changes to ensure compliance. VAT authorities change their rules frequently so not staying on top of those changes comes with penalties. This can be a lot of pressure for an internal team to carry.
Support your in-house team with VAT compliance technology
Even if your business does decide to manage its VAT internally, it’s worth exploring software that can make the entire ordeal easier. VAT compliance technology exists to help set the entire process on autopilot. For example, our own platforms act as VAT compliance companions for international tax teams with registrations in multiple jurisdictions. Inhouse VAT management is possible if you have the right technology to support you:
Automated, cloud-based VAT filing
Managing your VAT compliance inhouse doesn’t mean you have to do everything inhouse. Especially, repetitive and mundane work. Leave that up to technology so that your team can focus on more strategic goals.
Vfile is our VAT filing technology and allows a company to file VAT returns and other reports in over 30 countries. The app integrates with a company’s accounting system to automatically import sales and purchase data into a cloud-based platform.
Effective data analysis and transaction validation flags possible errors and gives a company the option of fixing these immediately online, with a full digital audit trail.
VAT returns can be submitted electronically wherever possible. Otherwise the final return will be displayed online in English and can be downloaded or sent to colleagues.
One Platform to rule them all
You may want to manage your VAT compliance inhouse but you can mitigate the risks of human error and manage your workflows more efficiently by adopting technology that addresses each part of the filing and compliance process. Effectively, having one VAT compliance software to take care of everything for you.
vsuite is a collection of cloud-based VAT applications engineered by Vatglobal to automate the VAT compliance experience.
Automating compliance is about more than speed and efficiency, we have developed digital tools that also make the process more rigorous: applying checks to ensure reports are accurate, managing workflow and processes more effectively to ensure all deadlines are met.
Knowledge is king
DIY VAT compliance requires that your team become international VAT experts. So you need a knowledge platform to help you achieve that.