Brighton (PRWEB UK) 27 July 2013
Now, more than ever, international businesses need to consider VAT regulations in multiple countries to avoid VAT becoming an unnecessary cost. Firms which do business in Europe need to ensure that they account for the correct amount of VAT in the correct Member State at the correct time. Failure to do so can result in financial penalties being incurred and exposure to additional VAT costs which will directly affect profitability.
If VAT is not accounted for correctly, this can also lead to problems with customer relationships, as companies will have to spend valuable time resolving issues, says Andy Spencer, Accordances Head of Consulting. Preventative measures are often the best way to avoid these issues from arising, so making sure that you review your Enterprise Resource Planning (ERP) or accounting systems regularly can save you a lot of time and money in the long run.
A large number of VAT issues may arise due to the varying geographic nature of the services provided. As a result, it is important that the correct registration obligations and VAT treatments are identified, in order to ensure that any accounting or ERP systems can be coded correctly to take into account the jurisdictions where the business trades, in order to remain compliant.
An accounting system needs to identify:
Accordance warns companies to update their accounting systems carefully to take account of varying VAT regulations across Europe is a post from: business advice mentoring
