The Increasing Importance of VAT Compliance

Unless you’ve been running your business from under a rock, you’ll know that VAT has been steadily rising across Europe over the last few years. VAT now typically represents one fifth to one quarter of a company’s turnover, which is no small sum.

The complexity associated with calculating tax correctly in the first instance, preparing VAT returns and subsequently being able to provide all the supporting data upon request should not be underestimated. Even for businesses that have relatively straightforward tax processes and internal systems it will be time-consuming at best; but, inevitably, as business models become more complex, so does the path to compliance.

Ensuring your ERP system adequately supports your evolving business and the ongoing revisions to legislation is essential. As Alex Baulf, Manager, Indirect Tax, Grant Thornton, explains, “A company’s IT infrastructure may not provide the level of detail necessary, or the level of detail may reside in part of the system not easily accessible. Legacy systems and the limitations of native VAT functionality can also result in errors.” Read more on the Cloud NetSuite blog.

The Brown Smith Wallace 2012 Mid-Year Supplements are available. Visit our website to download your copy!

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