Importance of VAT for companies
Your contact
VAT plays a central role for all entrepreneurs in their financial planning and accounting. Companies not only need to keep an eye on tax rates. They must also ensure that they are able to calculate and pay VAT correctly. This requires accurate accounting and regular adjustment of documents and processes in line with legal changes.
Risks of incorrect implementation
The correct handling of VAT is a legal obligation. Missing or incorrect information can lead to financial burdens and legal consequences. Even small errors can be expensive: VAT, correction costs and penalties can have a negative impact on company profits. Systematic and long unrecognised errors in particular also harbour risks relevant under criminal law.
Complexity of the requirements
The legal requirements in the area of VAT are complex. They require a thorough examination of the subject and expert support.
With our experience in this area, we are on hand with advice and support. Our aim is to help companies manage VAT efficiently and minimise potential risks.
Our range of services in the area of value-added tax
Requests for information on VAT issues from the tax authorities
e.g.
- Preparation of requests for binding information
- Request for binding confirmation following tax audits
- Support in discussions with the tax authorities as part of the application process
Support for special VAT audits and inspections as well as tax audits
e.g.
- Preparation of the VAT audit, including audit simulations, health checks, etc.
- Support in the processing of VAT-related audit questions
- Negotiations with the tax authorities as part of the final meeting
- Follow-up on the results of the VAT audit, including the implementation of appeal proceedings and adjustment of subsequent years
Introduction of e-invoicing and e-reporting as well as procedural documentation
e.g.
- Advice on the implementation of e-invoicing and e-reporting, e.g. when introducing new ERP software
- Support in the selection of e-invoicing systems, including the creation of a specification sheet
- Clarification of individual questions regarding e-invoicing and e-reporting
- Creation of procedural documentation
Interdisciplinary review of issues and their optimisation during implementation
e.g.
- Company car taxation
- Gifts, samples etc.
- Monetary benefit
Representation in and out of court in VAT disputes
e.g.
- Advice in advance to clarify the chances of success of an appeal
- Support in opposition proceedings on VAT issues
- Conducting VAT-related legal proceedings before the tax courts
Structuring international supply relationships from a VAT perspective
e.g.
- Chain transactions and intra-Community triangular transactions
- Consignment stock regulations
- E-commerce
Client-specific VAT workshops
e.g.
- Determination of the current situation, identification of ‘critical’ issues in the past
- Training for accounting, purchasing and sales; creation of coordination processes within the company.
- Creation of customised work aids (e.g. checklists, table templates)
Registrations in Germany and abroad
e.g.
- Determination of the necessity of VAT registrations in Germany and abroad and, if necessary, recommendations on possible alternatives (IOSS, OSS)
- Support with the registration of foreign entrepreneurs in Germany, in particular preparation of the necessary documents
- Support for German entrepreneurs with VAT registration abroad with the help of our international PKF network
- ‘SPOC’ (= Single Point of Contact): Coordination services for foreign tax obligations
Comprehensive handling of VAT compliance
e.g.
- Preparation of advance VAT returns, annual returns, recapitulative statements, Intrastat returns, etc.
- Setting up and maintaining allocation keys with regard to the input tax rate etc.
- Validation of company-internal VAT returns (dual control principle)
- Monitoring of correction periods
VAT expert opinions in a national and international context
e.g.
- Entrepreneurial status for holding companies
- Organising tax groups
- Operating business topics
Support in criminal tax offence and administrative offence proceedings
e.g.
- Comprehensive representation of companies in the context of criminal tax and administrative offence proceedings
- Conducting and supporting internal investigations within the company
- Defence advice for companies
- Support during searches
- Preparation of company statements for the defence in criminal tax and administrative offence proceedings
VAT Compliance Management System
e.g.
- Support with the implementation of a VAT compliance management system (as a stand-alone system or as part of a tax CMS)
- Carrying out an analysis of VAT risks
- Preparing the necessary documentation
- Reviewing an existing VAT compliance management system and tightening it up where necessary
- Advice on the implementation of compliance measures
VAT Health Check
e.g.
- Simulation of the IT-supported audit by the tax authorities
- Random sample audit of invoices, documentary evidence
- Evaluation of audit results and tax office correspondence
Preparation and support of transactions
e.g.
- VAT due diligence
- Drafting and review of customised VAT clauses in contracts
- Preparation of Section 15a UStG documentation, in particular for real estate transactions
- Sale of business as a whole