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E X P L O R I N G D I G I T A L I N I T I A T I V E S

Emine Constantin

Frankfurt 2019

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D I G I T I S A T I O N O F T A X R E P O R T I N G

“No matter how complex things are, basically everything is simple”

EINSTEIN

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Adapting to the new ways

of doing business

D I G I TAL

E C O N O M Y

W H Y D I G I T I S A T I O N

TAX

G AP

The difference between collected revenues and theoretically

collectable revenues

VAL U E

C R E AT I O N

Transactions taxed in the

right jurisdiction

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TAX ADMINISTRATION GOES DIGITAL

E-FILING

Tax returns are

submitted electronically

(CIT, VAT, etc.)

E-REPORTING

Supporting information

is submitted

electronically (control

statements)

Data from various

sources is matched

across tax payers

Assessment of tax

treatment for relevant

transactions

Data analysis to avoid

fraud, error, mis-

reporting

Assessment of tax

payers based on data

submitted

E-FILING &

E-REPORTINGE-MATCHING E-AUDIT E-ASSESSMENT

Data analytics / More routine

sharing / More data requirements

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T A X D I G I T A L T R E N D S

Collecting more data

Moving to real-time or

near-real time

Practice sharing

Additional requirements

Move to digital is not

linear

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R E A L T I M E A N D S A F - T R E P O R T I N G

SAF-T:

Netherlands

Lithuania

Poland

Austria

Portugal

France (reduced)

Luxembourg

Norway (2020)

Live Reporting:

Greece

Hungary

Italy

Spain

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D I G I T I S A T I O N I N E U R O P E - L I V E R E P O R T I N G

Spain

Qualifying companies need to electronically supply data

from Spanish VAT books within four working days;

where third-party billing or customer self-billing is

involved, the deadline is extended to eight days

Detailed information is required

Hungary

As of 1 July 2018, all companies with VAT

number in Hungary are required to report sales

invoice data to the Hungarian Tax Authorities live

The invoicing software should be capable of immediate, real-time

data transfer to the Tax Authority, without

manual intervention.

Italy

Invoice-wise details of outward supplies made to registered dealer and aggregate taxable value

of supplies made to consumer are required

to be declared.

Inward and outward supplies are reconciled.

Greece

Companies need to provide daily reporting

on invoices

If e-invoices are produced in-house then these must be produced observing the directive

rules on digital signatures and data

integrity

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‘Light touch’ – only if efforts to comply are being made

Default surcharge – still very much in force

Filing digitally? Be sure to take screenshots if things go wrong

Notify HMRC prior to the due date of any problems (particularly with payments (if DD) and keep a record of calls made

‘Soft landing’ for digital links only in place for a year from the day of mandation into MTD

Late submission penalties approach softer, but late payments are still to be penalized as usual

Struggling to comply with MTD? Consider using NES (Needs Enhanced Service)

M A K I N G T A X D I G I T A L – C H A N G E S I N P E N A L T Y R E G I M E

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D I G I T I S A T I O N O U T S I D E E U R O P E

Brazil

SPED – Sistema Públicode Escrituração Digital -

was created to standardize and computerize the

relationship between the tax authorities and the tax

payers.

Under SPED, from 1 January 2008, Brazilian corporate taxpayers are

required to record electronically every tax

and accounting operation and file such details with

the federal, state and municipal tax authorities

China

Anti-counterfeiting and full control of invoice data are

the main objectives of China's Golden Tax System. It prevents the fraud of the

Fapiao (special VAT invoice) and controls the issuance I

verification of VAT by providing complete invoice

data for inspection.

August 2017 the Chinese government has announced that it

plans to start using blockchain technology for collecting taxes and

issuing electronic invoices.

India

Invoice-wise details of outward supplies made to registered dealer and aggregate taxable value

of supplies made to consumer are required

to be declared.

Inward and outward supplies are reconciled.

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W H Y D I G I T I S A T I O N ?

Control

over revenue leakages

Transparency

Data insights & matching

Faster processing

Efficiency & accuracy

Transparency

Data insights

& matching

Faster

processing

Efficiency

& accuracy

Control

over revenue

leakages

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D I G I T I S A T I O N O P P O R T U N I T I E S

Pre-filling of data (Canada)

Tighter controls (Poland -

STIR)

Virtual assistance (Australia,

Spain)

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D I G I T I S A T I O N C H A L L E N G E S

Barriers to adoption

Digital exclusion

Costs and resources

Outdated systems

Public opinion

Tax flow inversion

Security and

privacy

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Q U E S T I O N S

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T H A N K Y O U

Whilst we have taken reasonable steps to provide accurate and up to date information in this publication, we do not give any warranties or representations, whether express or implied, in this respect. The information is subject to change without notice. The information contained in this publication is subject to changes in (tax) laws in different jurisdictions worldwide.None of the information contained in this publication constitutes an offer or solicitation for business, a recommendation with respect to our services, a recommendation to engage in any transaction or to engage us as a legal, tax, financial, investment or accounting advisor. No action should be taken on the basis of this information without first seeking independent professional advice. We shall not be liable for any loss or damage whatsoever arising as a result of your use of or reliance on the information contained herein. This is a publication of TMF Group B.V., P.O. Box 23393, 1100 DW Amsterdam, the Netherlands (contact@tmf-group.com). TMF Group B.V. is part of TMF Group, consisting of a number of companies worldwide. No group company is a registered agent of another group company. A full list of the names, addresses and details of the regulatory status of the companies are available on our website: www.tmf-group.com. © May 2017 TMF Group B.V..

Emine ConstantinGlobal Head of Accounting & Tax, TMF Group+40 723 526 254emine.constantin@tmf-group.com

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