What is the value of VAT and what is its impact on the P&L? Businesses estimate the cost at easily 20,000 euro per VAT number for tax filing obligations and associated checks, together with performing the necessary system adjustments to the local legal requirements. If you can keep that amount in your own pocket (annually!), that is a huge benefit. CFOs must look beyond mere compliance.
What does the VAT life cycle look like?
The VAT life cycle starts with accounting. After that, there are periodic compliance obligations and possible audits by VAT authorities. Then strategy and planning come into play. It is important to manage the entire cycle and not just the compliance aspects. Estimating the VAT value properly leads to a drastic reduction of expenses.
VAT at the top of the strategic agenda
Clear internal communication appears to be crucial for the success of a company's VAT strategy. VAT experts (both internal and external experts) do not always speak the same language as the CFO does. Nevertheless, they must place the topic of VAT on the CFO’s strategic agenda. The CFO Barometer reveals that over half of respondents think it is difficult to find someone who can explain VAT in understandable terms.