Shared Service Centre Reviews

A Shared Service Centre (SSCs) can be an effective means of optimising finance functions – particularly in large multi-territory businesses. But the VAT compliance issues that naturally arise as a consequence of creating an SSC structure can be relatively neglected in the set-up and management of the centre. Nonetheless, it’s vital that SSCs account for VAT correctly. Failure to do so is to take a major commercial risk – particularly in an era when large-scale European VAT reform (the VAT Package) is being pushed through by revenue-hungry tax authorities.

Common problems for SSCs include:

  • Inaccurate ERP VAT Coding
  • AR & AP issues
  • Incorrect VAT returns
  • Poor local VAT knowledge
  • SSC-Local Entity conflict
  • Intrastat and EC Sales List misreporting
  • Lack of awareness of changing VAT regulations
  • Missed EU Refund Directive reclaim opportunities

Accordance has an extensive history of working with SSCs across Europe, and has a deep understanding of the issues facing indirect tax staff in the SSC environment. Our advice and training has led to a significant rise in the standards of compliance across the accounting teams we’ve worked with: penalties have been avoided; savings identified; and processes clarified. Where necessary, Accordance can also provide comprehensive ERP VAT coding update and VAT registration and reporting services – including VAT returns, Intrastat reports and EC Sales Lists.

Accordance SSC support services:

  • VAT coding reviews to ensure VAT is correctly identified and declared
  • Assistance with achieving maximum VAT recovery on AP invoices
  • Reviews of VAT return processes and advice on controls
  • Analysis of import procedures to ensure the business is compliant, and that import VAT is recovered correctly and fully. The analysis can also incorporate Custom Duty issues to ensure that all reliefs are being utilised
  • Advice on VAT recovery expense claim rules in all countries. If expense claims are processed locally the analysis can advise on procedures to ensure that non-domestic VAT is being recovered through the Refund Directive.
  • Training for staff designed specifically to address issues arising in countries where the SSC has responsibility
  • Drafting of VAT Guidance Manuals for staff (and provision of on-going support to keep
    guidance up-to-date)
  • Technical liaison with IT on the implementation and testing of ERP VAT coding

To find out more, contact us.

Shared Service Centres VAT Guide

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