Indirect Tax (VAT or GST)
VAT, GST, Sales & Use, and other similar taxes are broadly based on transactions, and liability will arise regardless of profitability. Because most countries impose these taxes, most transactions are affected. Deloitte can help with timely planning and the application of technology-based compliance management solutions. This can help clients reduce costs, manage tax compliance risk, and at the same time increase confidence that nothing has been missed.
- Indirect tax consulting
- Indirect tax for financial services
- Indirect tax compliance & reporting
- Transactional consulting
- Business model optimization
Indirect Tax Consulting
With rates ranging up to 25 percent in various jurisdictions, Value Added Tax (VAT)/GST, Sales & Use Tax, and other indirect tax exposures can grow quickly without a cohesive plan and a firm understanding of each jurisdiction’s specific indirect tax requirements. Deloitte provides client focused advisory services on local and international indirect tax related matters including planning, rate determination and international consulting such as foreign indirect tax requirements. We take a standardized 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 plan aspects require attention. In the ever-changing environment, Deloitte professionals can help clients stay current with compliance obligations.
Indirect Tax for Financial Services
Insurance and reinsurance transactions, including related services performed by insurance brokers and agents, are exempt from value added tax (VAT) in the European Union. However, the European Court of Justice recently ruled that this exemption does not apply to a transfer, for consideration, of a portfolio of insurance contracts. As a result of this decision, insurance companies that plan to transfer insurance contracts to or from European entities should carefully consider the VAT consequences of those transactions.
International Indirect Tax Compliance and Reporting Services
Deloitte offers leading edge International Indirect Tax Compliance Outsourcing & Co-Sourcing services. We have established several Indirect Tax Compliance Centers to help determine consistent and highly efficient processing of returns. Deloitte can assume partial or full responsibility for Indirect Tax compliance obligations 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 specialize 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 specializations to help determine that the indirect tax advice delivered is within the context of the transaction as a whole. We track possible transaction tax or duty risks while helping clients manage tax deductions for, and tax recovery on, transaction costs. Deloitte’s diligence helps confirm that after a deal has been closed, the post-merger integration occurs in a tax efficient way.
Business Model Optimization for Indirect Tax
From the Indirect Tax perspective, Business Model Optimization (BMO) involves designing and implementing an approach for goods or services that embraces the convergence of technologies while managing overall tax efficiency and decreasing the levels of strategic risk. The potential benefits of BMO include
- Lower overall tax rate for the business
- Improved 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.