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Effective global VAT strategy: The four pillars

Is your global VAT position clear?

INSIGHT ARTICLE  | 

Consider the following questions to determine if your VAT position is on solid footing:

  • Do you have visibility and control of all key transactions within your global group?
  • Are you confident that your accounting systems are configured to accurately automate VAT decisions?
  • Do you have one or more employees with the technical skills and knowledge to provide effective VAT oversight and assurance?
  • Do you file and pay your VAT returns accurately and on time?
  • Is your VAT return preparation and filing process efficient and largely automated?

We have identified four pillars of service to an effective global VAT strategy:

  1. Structural – Ensure all aspects of operations are structured to make sure underlying transactions are effectively managed for VAT purposes.
  2. Automation – Ensure systems that assist in the management of VAT decisions and process are properly configured, and correctly used. Our team will work with you to select, implement and optimize third-party automation software covering both domestic sales and use taxes and global VAT.
  3. Compliance – Ensure the processes developed by the business to review and report VAT data to tax authorities are effective and fit for purpose. RSM professionals can advise on the design and effectiveness of VAT processes, prepare for an audit and the audit process, and provide a VAT assessment.
  4. Reclamation – Ensure there is a process for identifying and recovering any amounts of VAT that have not previously been claimed. Our team will work with you to close gaps in processes when new accounting or tax systems are implemented, provide awareness of statutes that apply in other jurisdictions, and reduce VAT overpayment.

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