Moving past mistrust: Revenue agencies partnering with business to close the VAT gap

VAT compliance is becoming an increasing burden for businesses. New research from Accenture found that 65 percent 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. Eighty-two percent 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.