Introduction Data minimisation and the usage of metadata are being actively investigated by countries all over the world in relation to real-time reporting. The reason for their interest in such solutions lies in the need for more secure systems which may be more resilient regarding data leaks due to cyber attacks, human errors or even snoopy public officials. Although these systems may indeed require less data in order to perform the required tasks, they are not completely secure nor increase collection beyond what is possible with confidential systems.

Introduction In this episode of VAT Talks we discuss VAT with Raul Zambrano (Director of Technical Assistance and Technology of the Inter-American Center of Tax Administrations at CIAT) and Vinicius Pimentel de Freitas (Tax Auditor of the State of Rio Grande do Sul (Brazil) and Coordinator of the Brazilian Electronic Invoice programs). Both are experts regarding the various implementations of e-invoicing/real-time reporting in Latin America. Raul and Vinicius first of all emphasise that e-invoicing systems in Latin America “require sending information directly to the tax administration”.

In many of our articles, we have analysed the potential of real-time reporting in tackling VAT fraud while producing benefits for businesses. Nevertheless, real-time reporting systems can be a valuable tool also in the fight against corporate income tax fraud. In this article, we will better explain how this is made possible and what are the benefits for tax authorities and businesses. What is real-time reporting Real-time reporting is an innovative solution to tackle fraud and increase country revenues.

In this episode of VAT Talks we meet with Andrea Parolini, member of the VAT Expert Group. Andrea has an enormous experience in the VAT world, being a professor at the Catholic University of Milan and legal and economic adviser to the Italian government between 2014 and 2016, when the Italian Sistema di Interscambio (SDI) was conceived. Join us to discover how real-time reporting was developed in Italy and learn about its results so far.

Confidentiality has a special place in our discussions with VAT experts. We are aware of the potential impact of ransomware attacks and data breaches on the economic activity of businesses and entire countries. This is why we developed a confidential real-time reporting solution. We have seen that tax administrations are starting to reduce the amount of data they collect. Nevertheless, this could get them into a very difficult situation as the less data collected the less useful the system becomes.

Introduction The latest European Commission, Fiscalis and VAT Expert Group meetings and the developments in multiple EU Member States show that real-time reporting (or Transaction-Based Reporting) is seen as the most feasible solution to VAT fraud. However, the idea of moving towards a definitive VAT system where the exemption on intra-Community VAT is removed, is also still being considered by the European Commission. In the following we will show that implementing one doesn’t need to exclude the other and that both can be perfectly combined.

Introduction Real-time reporting is on the rise around the world. While it’s main goal is to tackle VAT fraud, there are many other applications of this tool. However, these applications depend on choices made during the design phase of real-time reporting. One of the major design choices to look at is whether the registered VAT data is made publicly verifiable. Previously we have shown that this can help businesses to e.

Ransomware attacks are surging all over the world, becoming one of the biggest threats to our everyday lives. Taking actions against them is therefore crucial in order to spare high costs for businesses and to prevent disruptions of their economic activities. In the first part of this blogpost we discuss the impact of ransomware attacks on our society, following the latest attack on the American tech firm Kaseya on Friday, while in the second part we will analyse the potential of modern cryptography and decentralisation for preventing such attacks, mostly focusing on tax administrations.

We are honoured to have VAT expert Charles de Wet joining us on this episode of our VAT Talks. Charles has almost 30 years of experience in VAT across South Africa and Africa, which he gained in the South African Revenue Service, numerous positions within PwC and most recently at ENSafrica, Africa’s biggest law firm. We are excited to hear more about his fascination regarding VAT and being taken on a journey of his favourite experiences in three decades.

In the first part of our overview of the Mexican network clearance model, we explained how the Mexican Tax Administration (SAT) implemented its Comprobante Fiscal Digital por Internet (CFDI), its XML e-invoicing format, in 2011. To validate and control the invoices, PAC entities (Proveedor Autorizado de Certificación) are carrying out tax duties on behalf of the SAT. In the following article, we will review the benefits of having a network of certified third parties, and some of the inherent structural issues.