vat 101: understanding the basics (2)
TRANSCRIPT
VALUE ADDED TAX 101UNDERSTANDING THE BASICS
VAT is a transaction based tax that applies to local goods and services, and imports of goods and services.
There are VAT various rates around the world, with no set limits.
It is a self assessed tax, meaning taxpayers are responsible for
charging, collecting and remitting taxes to the authorities.
Listen to the webinarListen to the webinar
Registration requirements differ from country to country, and numerous tax
authorities operate special schemes for certain sectors, traders or those operating
beneath certain thresholds.
Listen to the webinarListen to the webinar
of companies we asked said knowing where VAT transactions are taxed is their biggest indirect tax concern.
45%Listen to the webinarListen to the webinar
Where transacitons are taxed is determined by a number of factors. Who are you selling to?
Are you selling goods or services?
If you are selling services, how are they delivered?
Where is your customer based?
Listen to the webinarListen to the webinar
There are a number of risks associated with VAT, such as those related to compliance, documentation, new revenue streams, and one-off and
unique transactions.
Listen to the webinarListen to the webinar
Want to keep it simple?
Listen to the webinarListen to the webinar
The following question will always help you grasp what is happening and how that may
impact the VAT position ...
Listen to the webinarListen to the webinar
WHO IS SUPPLYING WHAT TO WHOM
AND WHERE?
Listen to the webinarListen to the webinar
Who: Which entity or person is contracted to make the supply?
Listen to the webinarListen to the webinar
What is being supplied – goods or services?
Listen to the webinarListen to the webinar
Whom is the recipient of these supplies and what is their
status?
Listen to the webinarListen to the webinar
Where is the supplier located, the location or movement of the goods, the location of service performance or the location of the customer or recipient?
Listen to the webinarListen to the webinar
There are also a number of common misconceptions to be aware of, such as ...
Listen to the webinarListen to the webinar
US companies do not incur VAT or GST.”
Common misconception
Listen to the webinarListen to the webinar
Cost plus revenue does not attract VAT or GST.”
Common misconception
Listen to the webinarListen to the webinar
VAT and GST are just recovery mechanisms for getting tax back.”
Common misconception
Listen to the webinarListen to the webinar
If you incur VAT you must charge it on.”
Common misconception
Listen to the webinarListen to the webinar
A failure to recognize the impact of VAT on global operations may
result in significant financial penalties, interest and hidden
VAT costs ...
Listen to the webinarListen to the webinar
... but with proper planning, VAT can be minimized.
Listen to the webinarListen to the webinar
An indirect tax or VAT ‘health check’ review is a good first step as it will often
highlight risks and opportunities.
Listen to the webinarListen to the webinar
Want to make your VAT strategy as efficient as possible?
Connect with Radius:US: +1 888 881 6576 UK: +44 (0) 203 005 5518
Radius helps companies expand and win globally.
Want to make your VAT strategy as efficient as possible?
Connect with Radius:US: +1 888 881 6576 UK: +44 (0) 203 005 5518
Radius helps companies expand and win globally.
Want More Insight Into Key International Expansion Issues?
WINDING DOWN A BUSINESS ABROADWHAT YOU NEED TO KNOW BEFORE YOU SET UP
TOP 10 GLOBAL EXPANSION BEST PRACTICES
View the SlideshareView the Slideshare