Expert highlights importance of VAT compliance
Thursday January 21, 2010
An expert has advised businesses to focus on VAT compliance of new European Union regulations.
Quentin Pain, founder of software company Accountz, urged small businesses who may not already be aware of changes to the EU VAT system to take action now to ensure they comply with the appropriate rules.
He explained that the VAT changes, which took effect on January 1st 2010, affect all businesses involved in supplying or receiving cross-border services, as well as those who are reclaiming VAT incurred in another EU country.
“Companies need to take action now and the fastest route to ensuring compliance is through the use of flexible and intuitive IT solutions,” Mr Pain said.
“Applying the wrong VAT treatment could result in increased administrative costs and require the issue of credit notes, refunds of incorrectly charged VAT to customers.”
Stephen Alambritis, of the Federation of Small Businesses, recently told the Times that the government needs to look at the new regulations to make sure it is not “gold-plating” European requirements.