If your organization operates globally, you are likely well familiar with Value Added Tax (VAT). As international trade in goods and services rapidly expands, so does the spread of VAT. Goods and Services Tax (GST) and other indirect taxes, and the complexity that comes with it – including potential double taxation, unintended non-taxation, and steep penalties for noncompliance. This poses significant risk for multinational companies that may be obligated to collect and pay VAT and GST in the countries where they operate.
VAT is charged in every step of the manufacturing and supply chain. To void accumulation, every business buyer is in principle entitled to recover the VAT charged by the supplier. However, there are many material and formal requirements that must be met in order to effectuate this right of VAT recovery – making it critical to use the right expertise and process knowledge.
While VAT/GST/HST is recoverable in many situations, the process is a paperwork nightmare with which many companies just do not or cannot bother. How do you get those dollars back to your bottom line while minimizing compliance risk? It’s time to build a business case to modernize your VAT program, because VAT is not just about recovering money. It is also about quality, compliance, vendor trust and reliability, and a removal of the administrative burden of your team.
This eBook will provide guidance on processes and practices to help you meet compliance obligations and maximize your VAT/GST/HST recovery without all the headaches. Download today to learn about the 5 major reasons that these indirect taxes go unrecovered.