Financial managers usually classify the management of their VAT reporting and payment obligations as one of the most important tax riks.
The management of VAT formalities is indeed an ongoing challenge for most companies because the risks and issues as well as the level of potential sanctions can have a major impact on the cash position and the profitability of a company.
Compliance with formalities is yet becoming increasingly complex: declarative requirements round the world are extensive and the pace of legislative and case law change is accelerating, the level of informatiion to determine the treatment applicable to transactions is generally dependent on good communication between different business units (eg, logistics, finance, informatics, procurement and sales, marketing, R & D…), the configuration of ERP systems is often limited to standard features that often prove insufficient in relation to the diversity of business activites and/or their particularity…
In this context, we can assist you in establishing a risk diagnosis and identify corrective measures to be considered to reduce their impact in the future, or even opportunities to reduce latent tax costs.
Finally, we can also help you to identify the main issues related to the redesign of the VAT system in 2019, 2021 and 2022 with regard to your international activities.
scope of AUDIT
We operate in France and in the various Member States where we can act in connection with our correspondents of the Tax Representative Alliance (TRA).
what can we do for you ?
Our intervention can relate to all or some of the following elements (non-exhaustive list of checks for example):
- treatment of the flow of sales and purchases of goods and services,
- configuration of your information system,
- declarative formalities management processes,
- review of purchase invoices justifying the excercise of the right to deduct local VAT,
- reverse charge of VAT on intra-Community acquisitions of goods and purchase of services to service providers established outside France,
- good drafting of customs documents for import and export,
- proof of transport relating to intra-Community supplies of goods,
- review of the details to be indicated on the invoices according to the types of sales,
- purchase or import quota free of VAT,
- qualification of branch activities,
- review of service contracts and inter-company invoices and related formalities,
- VAT management procedures related to commercial cooperation operations, promotional operations…
- documentation of the reliability of the invoice audit trail…
On the basis of these elements, we will bring to:
- ESTABLISH A RISK DIAGNOSTIC AND QUALIFY THEM, taking into account possible penalties and interest for late payment,
- IDENTIFY CORRECTIVE MEASURES to be considered to reduce their effects in the future,
- analyse the possibilities of REDUCING LATENT TAX COSTS,
- advise you in SETTING UP AN ORGANIZATION ADAPTED to the complexity of your operations to improve the VAT management process,
- PROVIDE TRAINING FOR STAFF in charge of the day-to-day management of your VAT and Intrastat obligations.
Finally, in a prospective way, we can also HELP YOU TO IDENTIFY THE MAIN ISSUES RELATED TO THE REDESIGN OF THE VAT SYSTEM IN 2019, 2021 AND 2022 with regard to your international activities.
Do not hesitate to contact us for any assistance !