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6 ways your company can benefit from employing a VAT Compliance specialist
- Last update: 07.09.2023
- Published: 29.03.2023
- Read in: 5 min
Numerous businesses expand beyond their domestic borders as they seek to sell goods and services internationally. As a crucial step in this expansion, they must navigate the complexities of registering and settling VAT in foreign countries. This is where a VAT Compliance specialist can provide valuable assistance or even handle the entire process.
At times, registration may not be a mandatory requirement, and businesses might have the option to consolidate their sales to multiple countries by utilising VAT OSS. Nevertheless, preparing for these VAT-related procedures during the expansion phase can be both time-consuming and costly for a company. In such circumstances, outsourcing these tasks can present a more viable solution, and the help of a VAT Compliance specialist is the key to addressing these needs. Let’s now explore the advantages of collaborating with such a specialist.
What exactly is VAT compliance?
Before we dive into the specifics, let’s first define what VAT Compliance entails.
VAT Compliance is a specialised service that offers clients a comprehensive solution concerning VAT and associated processes.
This service primarily focuses on ensuring adherence to VAT regulations and the accurate and timely management of VAT registrations and settlements.
At Taxology, we have extensive experience in the realm of VAT Compliance and are ready to offer our expertise in:
- VAT registration in a different country,
- VAT OSS registration,
- VAT settlements and VAT OSS,
- automation of the settlement process via Taxology’s application,
- issues related to selling on Amazon and other marketplace platforms in Europe.
If you’re interested, please schedule a free consultation. Now, let’s proceed to explore the advantages that engaging a VAT Compliance specialist can offer.
It’s important to distinguish that a VAT Compliance specialist differs from a tax specialist, as VAT Compliance is specifically centred on value added tax.
1. Knowledge of regulations and provisions
Poland’s tax regulations differ from those of other countries. Therefore, when expanding into a new market, it’s wise to have this knowledge, which a VAT Compliance specialist can provide, helping you avoid penalties and inconveniences.
An illustration of critical regulations during market expansion is the requirement, as seen in Germany, to register packaging within the LUCID system. Failure to comply may lead to penalties of up to €200,000.
2. Save resources
Collaborating with VAT Compliance specialists who possess substantial experience can effectively reduce the workload for companies and result in significant resource conservation. Outsourcing VAT Compliance allows businesses to forgo the necessity of hiring staff or establishing internal departments to manage VAT filings and oversee VAT registrations in newly-entered markets.
3. Minimising risk
By collaborating with a specialist, particularly in the realm of tax procedures such as VAT, you can significantly reduce the likelihood of errors and violations of tax regulations.
It’s important to consider that many regulations in foreign countries, in addition to their native languages, are also available in English, typically presented in a formal legal and business tone. Moreover, these regulations undergo frequent updates, which may not always be well-known to entrepreneurs.
To avoid misinterpretations and errors, one needs to continuously monitor legal developments across different countries and possess proficient language skills.
These are the qualities that define our VAT Compliance specialists. If you’re interested in working with us, please don’t hesitate to schedule a free consultation.
4. Building relationships with tax authorities
Fostering a strong relationship with tax authorities is a critical element of running a successful business. One effective strategy to achieve this is by partnering with experienced VAT Compliance specialists who possess the necessary competence and expertise in the realm of tax legislation. Our specialists consistently stay informed about shifts in tax regulations and stay up-to-date with the latest VAT trends and guidelines. This proactive approach ensures that entrepreneurs can confidently operate their businesses in compliance with current legal requirements, reducing the likelihood of errors during tax settlements.
5. Staying up-to-date
VAT regulations are in a constant state of flux, but our team of VAT Compliance specialists remains well-versed in these changes. This commitment to staying current can significantly reduce training expenses for your company.
Furthermore, VAT Compliance specialists can introduce innovative tools to enhance your business operations, offering long-term benefits by streamlining and automating your VAT processes. A prime example of such a tool is the Taxology app, which can reduce the time spent on settlements from hours to as little as 15 minutes per month, at the same time providing your business with valuable efficiency gains.
6. Improving performance
By delegating VAT compliance responsibilities to a team of VAT specialists, employees can dedicate their attention to their regular tasks or other ongoing projects. Furthermore, partnering with specialists can significantly reduce the time required for employees to become well-versed in the intricacies of VAT, as opposed to the process of them familiarising themselves with the topic independently.
Forming a collaboration with VAT Compliance specialists can offer an exceptionally streamlined solution for many companies looking to engage in international sales. This expansion can encompass activities such as selling on marketplace platforms across various European countries or establishing their own subsidiaries within EU states.
Choosing VAT Compliance comes with a range of advantages, which include:
- Enhanced Security: Our expertise ensures enhanced security by staying ahead of continuously evolving legislation, tax audit protocols, and the ability to conduct timely and compliant VAT registration and return submissions.
- Comprehensive Support: At Taxology, our team of VAT Compliance specialists offers a comprehensive range of services. We not only handle tasks like registration, settlements, declarations, and VAT OSS but also provide guidance and support for any questions you may have.
- Safeguarding Against Sanctions: Different countries have unique financial regulations concerning VAT. With our specialist knowledge, you can shield your business from sanctions, penalties, or the risk of losing your licence or reputation, ensuring a secure and compliant VAT environment.
If you require assistance with VAT Compliance or are interested in determining whether it’s a suitable option for your business, schedule a free consultation with us.