Richard Cornelisse

Webcast about realizing indirect tax objectives

In Indirect Tax Strategic Plan on 27/03/2015 at 11:11 pm

Getting the right message across to senior management by following your company’s own business control framework.

This might facilitate in extra indirect tax resources and budget but also in an upgrade of roles and responsibilities.

Workforce efficiency is achieved as company’s resources do no longer spend time on further reducing indirect tax risks that are already at an acceptable level.

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Access webcast:

Richard H, Cornelisse

VAT Cross Border Rulings (CBR) – European commission

In Indirect Tax Strategic Plan on 27/03/2015 at 9:56 pm

What is it?

A pilot project has been set up to allow taxable persons to obtain advance rulings on the VAT treatment of complex cross-border transactions.

This project has started in June 2013 and is now scheduled to continue till 30 September 2018.

Several Member States are participating in this project, set up by the EU VAT Forum.

Taxable persons planning cross-border transactions between two or more of the participating Member States can ask for such a ruling with regard to the VAT treatment of the transactions they envisage.

Which Member States participate and how to ask for such a ruling?

More detailed information regarding the Member States currently participating, the conditions and the procedure can be found in the information notice.

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More information on Cross Border Rulings

The current list of cross-border rulings is available on line.

VAT Cross Border Rulings (CBR) – EU Pilot project

Realize sponsorship for change

In Indirect Tax Strategic Plan on 17/03/2015 at 7:41 pm

Assume that a Tax Function of a company should work under the same market principles as tax advisers and that the in-house customers are the executive management, finance, procurement, IT, logistics, internal audit, HR, legal etc.

Customer satisfaction is achieved by managing the expectations and relationships of internal customers, tax authorities, external auditors and other stakeholders.

The first is to determine the requirements of client satisfaction of senior management (C-level). Based on the above it seems that C-level executives consider indirect tax of lower priority than the indirect tax function generally does. Is the root cause misinterpretation or not understanding and speaking the same language?

The next step – to achieve mutual understanding – is to get agreement with senior management at the level of indirect tax risk appetite of the company in the worst-case scenario.

If you know the risk appetite, you have to identify the lowest performing indirect tax processes that have the most direct impact on the company’s business objectives (e.g. benchmark and measure). Short problem statements for the gaps found should be written. They should include an estimate of savings or the amount of hours currently lost due to rework.

Identify a problem, measure its magnitude, determine why the problem exists, and generates a set of solutions to ensure that the problem goes away.

These statements can subsequently be prioritized and validated with top management. Various solutions are presented with cost-benefit analysis, so a constructive discussion with top management can be held about what is needed to close these gaps (e.g. budget and/or resources needed or necessary for change of systems, processes and controls etc.).

In the worst case the gap(s) will not be closed, but at least you have achieved mutual awareness and hopefully responsibility. However, if the problem is material and addressed in the right way it will more than likely be dealt with accordingly, because it has now become a mutual responsibility.

Richard H. Cornelisse

Read more at Global Indirect Tax Management: a roadmap for indirect tax function effectiveness


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