Companies are discovering how to improve the bottom line by better collection of value-added tax and goods and services tax refunds.
From invoicing to tax returns, the technological demands made by indirect tax authorities are increasing. Businesses are catching up and discovering how they, too, can use digital tools to improve processes and the bottom line by optimizing their collection of value-added tax and goods and services tax refunds.
Sergio Fontenelle Marques, Ernst & Young Assessoria Empresarial Ltda. South America, and Gwenaëlle Bernier, Ernst & Young Société d’Avocats Indirect Tax, explain how these tools can help businesses even as they struggle to comply with a wide variety of data formats required across jurisdiction.
“Businessses are finding that digital capabilities also provide them with the visibility necessary to find mistakes prior to the authorities and to find cost savings,” Sergio says. “For example, we are helping a client with a $7.5 billion annual spend on purchasing to develop a tool that will allow them to find opportunities based on the data that they provide to the authorities.”
“I would recommend the taxpayer build up their own tool which really fits their needs,” Gwenaëlle says. “The second point is to data mine where the data sits. And lastly, obviously, they need to build up a reporting tool to be able to use this data to report it to the tax authorities.”
Sergio and Gwenaëlle also look at the impact of the Standard Audit File — Tax (SAF-T) urged by the Organisation for Economic Cooperation and Development.
Watch more in our video series on the future of tax.