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VAT obligations: My business probably has them, what should I do?

It’s easier than ever to incur VAT obligations, especially if you operate in multiple markets. If your business generates turnover in excess of the threshold set by your local tax authorities, you will need to account for VAT. 

Moreover, if you sell products or services in foreign markets, there’s an ever-increasing number of conditions under which you may be required to register for VAT.  For example, numerous countries now require companies that provide digital services to local customers to register for VAT. No wonder that VAT is now the largest source of consumption tax in OECD countries.

But how do you manage these obligations? How can you even be sure what they are? It’s easy with the right partner. Let’s take a look at some of the details.

Do I need a VAT consultant for my VAT obligations?


A specialist VAT consultant can assess your business’s operations and help clarify where you have VAT obligations. A consultant can also provide strategic advice on how to optimise your compliance. For example, you may be able to take advantage of mechanisms such as deferred VAT in some markets. 

However, you are still left with the problem of managing VAT. That means effective record-keeping and registering in every country in which you have a VAT obligation. Once you’ve registered, you will be required to comply with the filing requirements of each tax office. These will vary from country to country.

In some cases, you may even be required to appoint a fiscal representative to file on your behalf. 

Appointing local VAT agents

Alternatively, you might choose to appoint VAT agents in each country in which you need to register and file for VAT.  

Your local agent will understand the relevant compliance requirements and will ensure you file correctly, according to criteria set down by the local tax authorities. 

However, you still need to ensure all your records are properly collated and submitted to each agent. That’s a cumbersome process, with plenty of room for error.

If you fail to provide an agent with the correct documentation on time, you could be liable for penalties owing to VAT non-compliance.

Moreover, much of the administrative burden of collecting and preparing documentation sits with your in-house team. That’s inefficient and often a significant waste of time and resources.

A more holistic VAT solution 

Based on a decade’s experience managing global VAT, Vatglobal understands that businesses need a more integrated VAT solution to their VAT obligations.

Our centralised team offers one point of contact for all your VAT needs.  We assess your business as a whole. At the same time, our country specialists are deeply knowledgeable about the local VAT obligations and opportunities.  

We will provide you with cutting-edge strategic advice, while also managing all your filing and compliance paperwork. 

Vatglobal’s Managed Compliance service is the easiest way to ensure your business is always 100% VAT compliant, everywhere you have an obligation. It’s a technology-driven solution that frees you up to focus on your core business. 

 

 

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