4 Ways to Navigate the Shifting Tax Landscape

Regardless of how well-crafted your business plans might be, you need to be ready to adjust to the impact the shifting tax rules and government initiatives will have on your business. According to our CFO Insights report, regulatory compliance was ranked as the top external challenge, ahead of typical finance concerns such as the rising cost of capital, worsening economic conditions, and increased operating costs.

As a finance leader in charge of tax reporting, you need to leverage intelligent digital solutions to gain complete visibility into the tax implications of all your company’s spending to maintain compliance and increase certainty.

In this whitepaper, we discussed 4 ways you can future-proof your business by digitising your tax processes. Here’s a preview of the first 2 ways:

1. Optimise digital tax compliance

As national and local governments worldwide struggle with deficits and budget shortfalls, they’re leveraging digital tools to drive tax collection. The traditional country-by-country approach to tax compliance no longer works. To improve your digital tax compliance, you need to:

o Implement digital systems and processes to track and report digital transactions in near real-time.

o Use digital tools that meet country-specific regulations for receipt digitalisation, invoicing, and reporting to streamline tax filing.

o Be able to quickly and easily provide digital tax audits to the necessary tax authorities to prove compliance.

2. Maximize your VAT reclaim

Due to the complexity involved in reclaiming VAT and ever-changing regulations, businesses leave billions of pounds on the table each year in unclaimed VAT/GST/HST. To maximise the amount of VAT that your company is able to reclaim, you need to:

o Utilise machine learning and AI to automatically identify all eligible transactions for VAT reclaim based on the unique regulations of each country where you do business.

o Leverage digital solutions to automatically reclaim eligible foreign VAT in accordance with each country’s tax regulations.

o Use digital solutions to ensure all reclaims have correct, complete data so that they meet compliance requirements.