VAT & indirect tax

VAT and indirect taxes need careful planning as they make up an ever-larger part of the tax take.

Governments worldwide have shifted taxation to VAT and other indirect taxes over recent years to stabilise their tax base.

Not at least due to the increasing attention paid by the tax authorities at national and international level, VAT and indirect taxes have gained in importance for internationally operating companies in particular. Increasing complexity, caused mainly by a constant change in jurisdiction and legislation, as well as a partial lack of harmonisation across EU member states, not only make it more difficult to assess any special issues correctly for the purposes of indirect taxes, but also to fulfill the worldwide VAT and indirect tax obligations in the day-to-day business. Moreover, it has already become obvious that the COVID-19 crisis will have an impact on the sourcing of businesses – with a number of VAT and indirect tax issues.

With companies facing high penalties (including personal fines for the management of companies) for non-compliance, VAT and indirect taxes have risen up the corporate agenda.

We offer the support you need to meet your VAT and indirect tax obligations.

Typical areas of risk for businesses:

  • VAT groups, especially monitoring the respective requirements (e.g. internal guidelines, changes of managing directors). 
  • Implications of EU Action Plan, e.g. ‘Quick fixes’ 2020, e-commerce package 2021, final VAT system 2022. 
  • Warehouse concepts and its VAT/customs issues. 
  • Chain transactions, e.g. allocation of ‘moveable supply’, application of triangulation rule. 
  • Importation of goods (e.g. tariff codes, deduction of import VAT). 
  • Qualification as VAT entrepreneur, especially in holding structures. 
  • Input VAT deduction (e.g. VAT group, holding, valid VAT invoices, pro-rata). 
  • Sales structures and its VAT implications, e.g. ‘buy and sell’, commission model, agency structure, relationship headquarter and permanent establishment. 
  • Transfer pricing amendments and its implications from a VAT and customs point of view. 

Our approach

VAT and indirect taxes are transaction driven, complex, and can have a major impact on your bottom line. At Act 13 Advisory we can help with VAT and indirect taxation across the whole business lifecycle, from when your company is formed through to detailed structuring of transactions and assistance in terms of litigation.

Our tools & solutions

  • VAT Comparison tool: Our VAT comparison tool offers our clients the opportunity to gain information of country specific VAT jurisdictions. This enables businesses to get an initial idea of the VAT  
  • VAT-ID Verifier tool: A fully integrated software solution. We offer you a solution whichever you need: Quickly and personally via our Managed Service, simply and permanently online via our self-service or seamlessly automated through ERP integration. We will help you to find the best solution for you. 
  • Signals/InControl: Our VAT and indirect tax team uses a range of globally accessible tools, e.g. our communication platform Signals and the dashboard InControl.  
  • Customised IT tool development: We appreciate on-going and close contact with our clients. In terms of IT tools and solutions, we focus on developing products on market demand, preferably together with our clients.