My regular readers have heard it many times before – be on top of your business, or your VAT liabilities will become showstoppers. Over the past 5 or so years, the VAT world has become incredibly complex, and even more recently global VAT reporting has ballooned into a onerous mess of requirements and filings.
On top of that, almost every multinational company is doing something in the digital world. Companies that focus on business-to-business sales are embracing electronic procurement, self-billing and electronic invoicing. The big global retailers do all that – and in addition have to deal with the VAT rules on digital sales of goods and services. That latter category has snowballed into regulatory disarray last year, and in the EU, Japan and other countries the current rules are unclear at best.
The UK firm of EY produced a comprehensive write-up of the current status of the VAT situation of digital businesses. Changes are ongoing, and EY has a couple of great tips to consider.
More is here: https://taxinsights.ey-vx.com/archive/archive-articles/tax-risk-soars-for-businesses-in-digital-world.aspx