Based on the tax authority's public announcement, the VAT deduction right may also be lost due to a party independent from the taxpayer if the taxpayer failed to appropriately review the partner before the transaction.

Had the taxpayer conducted a thorough review beforehand, he may have identified some circumstances that endanger the right to deduct VAT. Statutory risks of internal processes within the company are easy to detect; however, identifying the same at third parties is more of a challenge. PartnerScan is Deloitte's technical solution that allows you risk free contracts and transactions with your vendors.

The software accelerates and simplifies review processes as all you need is the basic business data of your potential partner to run the check. PartnerScan's algorithm is based on the effective tax authority guidance, supplemented with the broad tax litigation experience of Deloitte's experts.

The programme may be adapted to the unique features of the user's activity, and the transactions with the individual partners may be weighted based on their VAT content. This double functionality allows your company to focus on transactions and areas that need special attention during the reviews.

As the result of the partner review, you receive a user friendly, well structured report with a management summary; this way you need not process large data sets that may be sent by your partner on a daily basis unfiltered and without any guidance. The report on the reviews may be broken down to partners so that in case of a potential tax audit you can share only the relevant section with the tax authority.

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Zoltán Tancsa

Zoltán Tancsa


Zoltán is Partner-in-Charge at the Tax Department of Deloitte Hungary. He is the Service Line leader of the Indirect Tax group which deals primarily with value added tax and customs related issues. Cu... More