Every company possesses data containing a wealth of information about your company and the business processes. Smart tools -including tools in the area of VAT- make it possible to obtain multiple insights from this data, concerning for example your VAT position and opportunities for optimisation. Baker Tilly has developed various tools to support the optimisation of your VAT position.
The VAT tools are based on the current VAT laws and regulations and determine whether you are compliant, based on the data from your (ERP) system. Frequently made input errors and/or suboptimal VAT processes may also come to light by means of various automated checks. The combination of these tools and the expertise of our VAT specialists provides you with fast and useful insights into the most important points of attention and possible solutions.
For your business’ VAT reporting obligations, we utilise special compliance tools to prepare your returns efficiently and thoroughly. These tools analyse data that you have provided, for example by verifying the VAT identification numbers of your customers. Additionally, these tools allow us to process your VAT returns in a fast, accurate and automated manner. This is the case not only for Dutch VAT returns, but also for VAT returns in other EU countries.
International Trading Tool
Is your enterprise involved in the international trade of goods with other entrepreneurs, or do you have an online webshop with which you sell goods to entrepreneurs and/or consumers in other EU countries? In that case it is very important that you are aware of the VAT obligations in the countries concerned. Baker Tilly has developed an International Trading Tool which offers immediate insight into your company’s level of compliance and the areas where optimisation is possible.
The VAT scan provides an overall view of your business’ VAT position. The VAT system is more complicated than is often assumed. By performing a VAT scan of all the data in your financial system, we first flag any inaccuracies. Next, we advise you on the correct VAT systematic. The scan determines the possible risks of the identified inaccuracies, quantifies these risks where possible, and indicates potential for savings. Together, we use the conclusions from the VAT scan to determine what corrections are necessary to mitigate the risks of retrospective charges and fines. The VAT scan is therefore an excellent tool for obtaining better control of tax risks.
The Dutch Decree on Exclusion of Deduction of input VAT (Besluit Uitsluiting Aftrek van voorbelasting or “BUA”) provides for a correction for the private use of goods and services for employees or relations. To put it briefly, you must apply this correction if you have incurred (privately used) expenses totaling more than € 227 (excluding VAT) per employee or relation per year. In order to determine, in a simple manner, whether you need to apply a BUA correction, Baker Tilly has developed a BUA Tool. After you have entered the information required, the tool automatically calculates whether you must pay a BUA correction to the Dutch tax authorities at the end of the year.
Tax Control Framework
Tax risk management is becoming more and more important, especially now that the Dutch tax authorities increasingly expect enterprises to demonstrate that they are in control of their tax risks. Depending on the size of your business, one of the requirements by the Dutch tax authorities is the creation of a Tax Control Framework (TCF). A TCF is a system of processes and internal controls, through which your business gains insight into the tax risks and is demonstrably in control of these risks. A TCF may also identify tax opportunities for your business. Implementing a TCF must take place in a structured manner. Baker Tilly would be happy to help you to determine and implement the steps for setting up a TCF.
VAT optimisation of your ERP system
Some ERP systems no longer align with new business models. For example, it may be the case that the basic functionality of the ERP system is not sufficient (anymore) to comply with all VAT obligations. If, for example, the VAT codes cannot be correctly installed, these ERP systems cannot (or no longer) correctly process the data, which may lead to incorrect invoicing and incorrect VAT returns. In that case you may consider involving one of the Baker Tilly specialists. We analyse the current VAT processes of the ERP system with a view to identifying problematic areas. Our VAT advisors are very experienced in this area and would gladly assist you in seeking solutions to control your VAT position.