Our Head of Technology Marco van der Veer considers tech-enabled VAT reporting and digitisation. The major forces reshaping VAT in the EU.
At Sovos Accordance, we bring together deep VAT expertise with the latest technology to support reporting in the age of digitisation. Find out more.
International Accountant | The Shifting Sands of Compliance
Marco van der Veer is Head of Technology at Sovos Accordance. He specialises in VAT and technological change management, and is responsible for future-proofing VAT compliance offerings, working alongside strategic partner SOVOS to integrate bespoke technology into their service offering.
Europe may only just be waking up after its coronavirus induced sleep, but there are major technology
and legislative changes shifting the sands of compliance and accounting practices that have taken no time off at all.
Digitisation is coming to Europe. It’s not coming at the same speed in all places. The approaches across the bloc are significantly different, often contradictory and usually complex to manage. But over the next decade, tech-enabled VAT reporting and digitisation will reshape VAT in the EU. There is much that businesses and accounting professionals need to be doing to prepare themselves for the seismic shifts; in both mindset and practice that will occur in the coming years.
The need for digitisation
Though the coronavirus pandemic has caused an unprecedented lull in business activity across a range of sectors, it may conversely heighten the need for and interest in digitisation. With a global recession predicted and many EU countries set to be hit hard, tax authorities may streamline their plans to move towards digitisation, and the unparalleled and at times unfettered access to business data it offers which helps to limit fraud, lessen the VAT gap and generally boost a nation’s coffers.
Europe sits some way behind other parts of the world in terms of digitisation. Indeed EU tax authorities may look to the control afforded to their Latin American counterparts with significant envy. Chile is widely recognised as the gold standard of digitisation. Under the complex Chilean invoicing system, all invoices go to the tax authority for clearance before the customer sets eyes upon them. This means that there is no capacity for businesses to forget or wilfully mislead the authorities with regards to their income, and the state has a full and frank appraisal of the sales made by companies…