Global indirect tax news
Monthly newsletter covering VAT, goods and services tax, sales tax issues, and customs and trade issues around the globe
Indirect tax (VAT)
Deloitte’s global network of indirect tax and customs and global trade professionals provides advisory services along with a range of efficient outsourcing and co-sourcing options, applying innovative technology solutions.
How we can help
VAT, GST, sales & use and other similar taxes are broadly based on transactions, and liability will arise regardless of profitability. Deloitte can help with timely planning and the application of technology-based compliance management solutions to help reduce costs and minimise risk while increasing confidence that nothing has been missed. Deloitte’s worldwide network of professionals provides advisory services and a full spectrum of highly efficient outsourcing and co-sourcing solutions.
Indirect tax consulting
With a standard VAT rate of 23 percent VAT exposures can grow quickly without a cohesive strategy and a firm understanding of the businesses specific VAT requirements. Deloitte provides client focused advisory services on Irish and international indirect tax related matters including planning, rate determination and international consulting foreign indirect tax requirements. We take a systematic approach from start to finish. We employ smart tools like web-based questionnaires to help fully control the process. Based on the outcome, we can help determine which indirect tax strategy aspects require attention. In the ever-changing tax environment, Deloitte professionals can help clients stay current with compliance obligations.
Business model optimisation for indirect tax
From the Indirect Tax perspective, Business Model Optimisation (BMO) involves designing and implementing an approach for goods or services that embraces the convergence of technologies while optimising overall tax efficiency and decreasing the levels of strategic risk. The benefits of BMO include:
- Lower overall tax rate for the business
- Improved reported earnings (below the line) and cash flow
- Reduced complexity
BMO projects inevitably touch many aspects of business operations. Deloitte provides integrated services that cover tax, accounting, and business consulting, providing clients with holistic solutions, as a result of considering multiple perspectives.
Deloitte delivers business model optimisation services using the BMO Insight methodology, part of the Deloitte Tax Insight suite of services, a set of experience based approaches to developing solutions to a range of tax issues and opportunities.
International indirect tax compliance and reporting services (compliance and outsourcing)
Deloitte offers leading edge International Indirect Tax Compliance Outsourcing & Co-Sourcing services. We have established several Indirect Tax Compliance Centres to help ensure consistent and highly efficient processing of returns. Deloitte can assume partial or full responsibility for Indirect Tax compliance obligations within Ireland or across multiple jurisdictions. With our ability to deliver worldwide proven experience and innovative application of technology, Deloitte offers a full spectrum of highly efficient Compliance Outsourcing and Co-sourcing solutions. So whether you need to file only one or over 1,000 returns, Deloitte can help you.
Transactional consulting for indirect tax
Transactions are often not part of the day-to-day operations of the finance department or in-house Indirect Tax experts. To fill this knowledge and experience gap, Deloitte provides transactional advisory services delivered by professionals who specialise in Indirect Tax and are immersed in it every day. Deloitte professionals follow a holistic approach by working with Deloitte transactional specialists in financial advisory, consulting, and other tax specialisations to help ensure the indirect tax advice delivered is given within the context of the transaction as a whole. We track possible transaction tax or duty risks while helping clients maximize tax deductions for, and tax recovery on, transaction costs. Deloitte’s diligence helps ensure that after a deal has been closed, the post merger integration occurs in a tax optimised way.
Dispute resolution services
The current financial environment has increased pressure on the tax authorities to maximise tax receipts and on businesses to minimise costs. The tension between these two different perspectives and the fact that tax is governed by complex national and EU legislation can lead to costly disputes. Deloitte has developed significant expertise in effectively managing disputes with the Revenue, particularly those that arise from Revenue audits, to reduce the cost to business. Our dispute resolution team is staffed by senior personnel drawn from Revenue, accountancy and legal backgrounds who have experience in eliminating and reducing tax liabilities being sought by the Irish Revenue. Our success is based on a recognition that the official view is not always the correct one and by developing robust technical arguments we have successfully challenged even long-established practice. This approach is enhanced by our in-depth of knowledge of the EU legislation and case law, which can confer an advantage on businesses that is not provided for in Irish legislation. Our primary objective is to add value by reducing the costs of a dispute with Revenue and to continue adding significant value to our clients at a time when conserving and generating cash is more important than ever.
Addressing your RCT and VAT training needs
We feel that giving people the skills they need to address RCT/VAT issues and embedding processes will not only reduce the risk of future error, but also reduce the reliance on outside assistance in future years.
First and foremost, we can help you identify your obligations in this regard. We can deliver training sessions on the practical operation of RCT, including its interaction with VAT. We have significant experience in providing RCT/VAT training sessions and each session would be specifically tailored to your company’s RCT/VAT obligations and the specific requirements and scope of such services would be discussed in advance of any planned session.
Our VAT/RCT team are also well versed in conducting VAT and RCT reviews to help you identify potential areas of tax exposure.
VAT and RCT Interaction in Construction Operations
Ted Holohan and Alan Kilmartin interaction analyse the complex between VAT and RCT in relation to construction operations, where difficulties of interpretation are exposing businesses to significant compliance risks.
This article first appeared in Irish Tax Review, Vol. 28 No. 3 & is Copyright of Irish Tax Institute.