Doing Business in a Region with Sophisticated Indirect Tax Systems

In Europe you will find some of the world's most sophisticated systems for indirect taxation. Although the EU VAT system can be qualified as complex of nature, it has become one of the most important references for other countries that have or want to introduce a VAT system. Similar statements can be made for the regulations in the field of customs law or international trade law. Additionally, international treaty networks have increased the level of quality and complexity of the legal framework in the field of indirect taxation. Even when indirect tax provisions have a common background, there are still substantial differences between national systems for indirect taxation.

For as far as indirect taxes are concerned, the current legal situation in Europe is complex. The VAT system in Europe is not identical with GST systems that are applied in other parts of the world. Furthermore, VAT systems in Europe are subject to continuous change, due to legislation, administrative practice or case law. Formalities in the field of customs law are more and more embedded in electronical systems, i.e. in the near future all customs procedures relating to business transactions will be handled "paperless". Eastern European countries that are preparing for EU accession will adapt their tax systems. The latter will increase the gap that currently already exists with eastern European countries that apply indirect tax systems that are heavily influenced by administrative practices of local nature and for that reason difficult to master by foreign companies.

Consequently, it is hardly surprising that companies experience difficulties in determining the legal consequences of international transactions or implementing the indirect tax treatment in particular countries or on a regional scale. Not to speak when it comes to the question of designing a system for indirect tax treatment of the international transactions in which the company is involved, especially when that system shall fulfil requirements like efficiency, comprehensibility and practibility.

Handling International Transactions

In our understanding of managing indirect tax treatment, it is essential to take the business flows and processes within the company as basis and starting point. Consequently, often we see that due to our design and transaction mapping the responsible persons within the company gain a better understanding of the business processes of their own company. International indirect tax process management is not just adding some legal consequences to international transactions with goods or services. Companies will only be able to handle international transactions succesfully if they are able to integrate the indirect tax processing in their business processes. Only then companies will be able to deal with international indirect taxation in a more flexible, reliable and comprehensible way.

Experience savoir-faire in Indirect Taxation

The aim of VAT plus group is to enable companies, to the extent possible or wanted, to manage the indirect tax processes that are linked to their international transactions with goods or services. The knowledge transfer is structured in such a way that the company will know what aspects of the indirect tax process management it will be able to handle in future itself and for what aspects it can additionally rely on the support of the VAT plus group.

The offer we can make

The VAT plus group specializes in designing and implementing systems for indirect taxation of international transactions in which several countries (from few to a large number) are involved. The legal support can comprise complete solutions, modules, individual issues, or can have the character of coaching companies that want to design or implement on their own.

If you want to learn more about pan-european VAT/customs duties planning you can contact us by email or call our head office at +41 31 312 27 54.