Very soon its gonna be time to say goodbye to the VAT return entirly…
Due to the huge amount of undeclared VAT in the EU, it has forced countries in Europe to impose digital reporting for transactions.
Some of the latest regimes for this are live invoice and approval submissions to the tax authorities. Currently Poland have already scrapped the idea of VAT returns and are now relying on VAT transaction submissions monthly.
This new regime is now placing huge pressure on businesses selling online to update their accounting systems and tighten up the gap on their VAT declaration processes. This is because tax authorities will now have live access to transactions which are taxable.
This forces businesses to ensure their compliance for their VAT liabilities in real time.
This method is to also cut cost of administering the tax regimes. Tax authorities are now working on up skill tools for A.I.
There is also more of a need to share data cross borders with other tax authorities to track goods and services movement. This also introduces the adaptation of common data standards coming together digitally.
Cross Border VAT software ensures your VAT Compliance with all your sales data and will also manage your distance selling thresholds, as well as the correct formatting for your VAT reporting.