Should you outsource your VAT compliance to multiple providers or is it better to choose a one stop shop for all your VAT compliance needs? To answer the question, let’s start by asking why you would be outsourcing your VAT compliance at all.
The value of outsourcing your VAT compliance
For many companies, outsourcing your VAT compliance is the efficient thing to do. VAT compliance is complex and the regulations vary from country to country. Certainly, managing a business’s global VAT compliance obligations is often too technically and bureaucratically demanding for an in-house finance team.
By contrast, VAT specialists understand the relevant local regulations and filing requirements. Your local VAT provider will prepare and submit your VAT returns in the correct format at the correct time.
Outsourcing to multiple providers for multiple markets?
Do you need to appoint a different VAT provider for every market in which you operate?
In some cases, you are obliged to appoint a fiscal representative in a particular country. So you naturally consider outsourcing your VAT compliance to an agent in each country in which you need representation.
However, multiple providers means multiple lines of communication. You’ll therefore need a process in place to ensure you supply each provider with the data and supporting documentation they need to manage your VAT compliance.
Coordinating between multiple providers is therefore quite administratively intensive. There is also the possibility that important documentation gets lost in the process. Similarly, you may neglect to notice essential updates from one or more providers.
Who’s looking at the big picture?
There’s another potential issue with multiple VAT providers. None of them is considering your business holistically. You thus don’t have one centralised expert team considering your whole business, and advising you on how to optimise your global VAT compliance.
Similarly, each provider will be focused on their regional field of expertise. But what if you move into a new market or engage in new product lines? Do you need to find a new provider each time?
An integrated digital solution
Now imagine you could manage all your VAT compliance obligations, in every country, with one point of contact. A single, secure digital portal that automated VAT filing and eliminated human error. A centralised team that understands the local laws in procedures in each country in which you have a VAT obligation. A team that understands your whole business and can advise you on how to optimise compliance.
Vatglobal’s Managed Compliance solution is the easiest way to ensure your business is 100% VAT compliant. Vatglobal’s international team can register your business and get you fully compliant in over 60 countries. It’s the elegant solution to the complex problem of global VAT compliance.