VAT compliance is becoming an increasing burden for businesses. New research from Accenture found that 65% of European businesses view VAT as a significant administrative burden. Furthermore, survey respondents are also uncertain they are getting their VAT returns right.
There is a clear need for change. Pressure to improve revenue collection with increasingly strained resources is driving a search for better solutions.
The current advances in digital technologies provide an open opportunity. 82% of European businesses believe that revenue agencies should do more with technology to help improve VAT compliance and delivering public service for the future. The success requires the use of digital technologies as well as a real shift in the attitudes of revenue agencies and businesses to improve collaboration.
Forging new relationships
Businesses are struggling with complex VAT compliance requirements while revenue agencies are losing out on vital tax collection. Digital technologies can help build stronger relationships and close the VAT gap.
Cut the VAT gap
The Accenture VAT study surveyed small and medium-sized enterprise employees and large-enterprise employees in United Kingdom, Germany, Italy, France, Netherlands and Spain in February 2015.