Transparency and education required for digital tax processes

The way businesses collect tax is changing and steps are increasingly being made towards digitisation across industries and geographies. Governments are turning their focus to indirect tax and how it is collected from businesses. The issue follows the trend in seeking to streamline digitally the previously paper-based processes associated with invoicing and financial reporting which is currently sweeping across the global economy.

Aside from supporting compliance the benefits of digitally transforming traditional tax functions and ‘acts of business’ such as the recovery of cross-border VAT can help to plug financial leaks and to offset mistakes made by human error.

With this in mind it is important that organisations understand the underlying reasons for the digital shift and identify the opportunities that this presents.

Tides of change

It is interesting that the proposed changes to transaction controls in Europe have...