VAT advisory

• The ongoing increase in transparency and reporting requirements such as CSRD and other ESG initiatives, (public) CBCR, VAT in the Digital Age and Tax Administration 3.0 impact the organization through increased compliance burden, workload, data and system requirements and reporting processes.
• These new requirements result in additional pressure on data reporting and compliance processes and require careful orchestration among finance, tax and IT functions.
• Organizations are forced to rethink strategy and efficiently structure finance structure.
• The right strategy and transformation approach can prepare business operations to grow, embrace the digital agenda, maximize operational efficiency, and optimize capital assets.
• The new transparency and reporting requirements impact the entire organization and require a holistic approach that focuses on multiple service offerings.
• Deloitte tax can offer clients a coordinated, structured and multidisciplinary advice, from design to execution, working together with the client side-by-side.
  

Arlette Verdonk
Sr. Manager Tax
averdonk@deloitte.nl

In today’s business world, tax complexity is everywhere and knowledge is key to keeping on top of what is ahead. Creating an environment where knowledge can be created, circulated and ultimately shared both with clients and with our colleagues in the various service lines at the right place and time is crucial to ensuring that our clients can thrive. Our Knowledge Managent team supports our professional practice in their daily work and shares knowledge with our clients via alerts and events.

Lex Neijtzell de Wilde
Director Indirect Tax
lneijtzell@deloitte.nl

If you thought implementing FATCA / CRS was hard, try CESOP (or the Central Electronic System of Payment Information)! This has been brought in by the European Commission to fight VAT fraud in the EU and comes into effect from 1 January 2024. Whilst CESOP may appear to be just another tax reform at first glance, its significance lies in its impact on various aspects of the business – the Tax, Payments, Operations, Compliance and IT teams, quantum of data to be submitted, and AML-like penalty provisions for non-compliance.

As of 1 January 2023, both EU and non-EU digital platforms are obliged to verify and report information of sellers active on their platform to the tax authorities. National tax authorities are obliged to automatically share that information with tax authorities in other EU Member States. This allows tax authorities to tax the income that sellers earn from the sale of goods and services to EU customers via these digital marketplaces.The relevant data must be submitted to the tax authorities within one month of the end of the reporting period (i.e. by 31 January of the following year). Therefore, the first report must be submitted by 31 January 2024.

On 8 December 2022, the European Commission published its VAT in the Digital Age (ViDA) proposal, defining the core areas where VAT in the European Union will be modernized in the coming years. Particularly, the introduction of the Digital Reporting Requirements in the European Union (EU) will have a significant impact on the intra-EU B2B trade of businesses.