International indirect tax: the view from Grant Thornton Your issue: How can we manage indirect tax in our global supply chain? Our solutions • international supply chain transaction mapping • review of Incoterms used • review of clearance procedures to identify any area of weakness • classification of goods to provide greater certainty correct duty rate has been used and goods declared using correct tariff heading • valuation of goods by adopting appropriate valuation method ensures only the necessary amount of VAT and Duty are paid • review of possible reliefs that could apply e.g. cashflow savings achieved by deferring point at which goods deemed to be imported • review of numerous VAT/GST obligations associated with importing and exporting goods • drafting of standard operating procedures and compliance manuals Your issue: How can we manage our VAT, GST and sales tax compliance obligations globally? Our solutions • local VAT/GST compliance outsourcing • pan-European VAT compliance centre using iVAT solution in the Netherlands • North American sales tax compliance centre using Vertex solution in the US • global coordination of compliance using workflow management solutions • tax technology solutions to relieve pressure points in the VAT, GST and sales tax compliance process e.g. tax engines and compliance tools • review of invoices against local requirements • review of IT systems including use of tax codes • review of processes and controls • data mining and analysis of VAT and GST at AP/AR level using our ExcaVATe tool • drafting of standard operating procedures and compliance manuals • VAT, GST and sales tax training • timely updates on global changes through our VAT Club group on LinkedIn © 2014 Grant Thornton UK LLP. All rights reserved. Grant Thornton UK LLP is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. Services are delivered by the member firms. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions. Please see grant-thornton.co.uk for further details. International indirect tax: the view from Grant Thornton Hot topics in indirect tax Automation and tax technology Businesses are increasingly looking to automate their indirect tax processes through the use of tax technology solutions. While there is no “one size fits all” automated indirect tax solution, there are a suite of solutions available from third party providers which are designed to relieve specific pressure points in the indirect tax compliance processes. For example, a tax engine can be used to automate the determination of VAT/GST/sales tax liability, whereas a compliance tool can assist with the automated preparation and submission of a VAT/GST/sales tax return. Taxing the digital economy A growing global trend is the taxing of non-resident suppliers of digital services – levying tax where consumption takes place even where the supplier has no natural “nexus” to that country. While the European Union introduced legislation back in 2003, new rules apply to EU resident suppliers with effect 1 January 2015. In addition to the EU, Switzerland, Norway, Iceland and South Africa have introduced similar rules. Both Japan and Canada have also announced proposed legislation. Focus on processes and controls Tax authorities are placing increasing emphasis on the transparency and robustness of indirect tax processes and controls. Penalty regimes are being linked to this and in some jurisdictions, officers in the company must attest to the robustness of systems and controls in place e.g. the UK’s Senior Accounting Officer rules. © 2014 Grant Thornton UK LLP. All rights reserved. Grant Thornton UK LLP is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. Services are delivered by the member firms. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions. Please see grant-thornton.co.uk for further details.