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From data to insight: Keep track of your VAT with our International Trading Tool

Published on: 15 juni 2023
Type of publication Insight

If you sell goods to clients around the world, then you’ll be operating in a very different environment to companies that only deliver within the Netherlands. You will have to deal with different VAT rules and obligations, increasing the complexity of your VAT administration. The key question to ask yourself then is: How do you keep control of your VAT administration and ensure that you consistently apply the correct VAT rules?

Complex regulations are constantly changing

Matters such as Brexit and new e-commerce rules have made it difficult to comply with changing regulations. Also given the upcoming changes under ‘VAT in the Digital Age’ and the reform of the customs union, it remains very important for entrepreneurs to be aware of rules and obligations.

When it comes to trading goods internationally with other entrepreneurs and selling to consumers, rules regarding matters such as the destination country principle, the threshold amount for intra-EU distance sales, import VAT, the platform fiction and the one-stop shop may be relevant. Moreover, you need to know in which country you are required to pay VAT and where you have VAT filing obligations. Non-compliance can have major administrative, financial and commercial consequences.

Utilise the insights from your data

As an entrepreneur, you already keep thorough records. You can use this data to stay compliant and in control. This enables you to maintain a proper overview of your company’s VAT position, and you can even identify and make use of optimisation opportunities. You already have the raw data in your records – we help you turn it into useful information.

Optimising your VAT position

Baker Tilly has developed the International Trading Tool (ITT) specifically for cross-border trading. It is a practical tool that provides insight into how VAT-compliant your business is. The tool is based on the current VAT regulations and determines whether you comply with these regulations based on the data from your business system. Among other things, the automated checks uncover input errors, inaccuracies and imperfections in your VAT processes and administration. Based on these findings, you can then determine where improvements can be made to optimise the VAT position.

The International Trading Tool

The International Trading Tool offers you the following benefits:

  • An overview of your company's VAT flows and position;

  • Control of, and insight into, your VAT compliance by means of a clear dashboard;

  • Automated checks of the data you supply on matters such as VAT position, VAT amounts, VAT identification numbers and flows of goods with underlying transport and other documents;

  • Ability to determine the VAT treatment based on the country to which the goods are being sent and the customer’s VAT status;

  • Ability to check for discrepancies and their origin at invoice level; and

  • Identifying VAT risks.

If you would like to know more about our International Trading Tool, we would be happy to explain it to you! Please feel free to contact our advisors to discuss how you can use this tool to gain greater insight into your international VAT position and any areas that may need attention or improvement.

Do you want to comply with VAT regulations?

If you have questions about the VAT rules for cross-border supplies and services, or would like more information on how we can help you tackle your VAT compliance challenges effectively, Stevie Mols and Marisa Hut of Baker Tilly VAT & Customs Advisory would be happy to tell you more about our services and how you can use automation to stay in control.