VAT and indirect taxes need careful planning as they make up an ever-larger part of the tax take
Governments worldwide have shifted taxation to VAT and other indirect taxes over recent years to stabilise their tax base.
Not at least due to the increasing attention paid by the tax authorities at national and international level, VAT and indirect taxes have gained in importance for internationally operating companies in particular. Increasing complexity, caused mainly by a constant change in jurisdiction and legislation, as well as a partial lack of harmonisation across EU member states, not only make it more difficult to assess any special issues correctly for the purposes of indirect taxes, but also to fulfill the worldwide VAT and indirect tax obligations in the day-to-day business. Moreover, it has already become obvious that the COVID-19 crisis will have an impact on the sourcing of businesses – with a number of VAT and indirect tax issues.
With companies facing high penalties (including personal fines for the management of companies) for non-compliance, VAT and indirect taxes have risen up the corporate agenda.