Tax audits and investigations
We are always on hand to provide your business with comprehensive solutions tailored to your circumstances.
The Problem
In recent years it's true to say that the huge explosion in the E-commerce trade sector has created a major problem for the pan European tax authorities. They have become increasingly aware that the massive transactional upturn has not been matched by a comparable boost to VAT revenues.
The actual figure is unknown but estimates by the European Commission suggest that in 2016, for example, it could have be as high as €147 Billion Euros across the whole of the EU for the tax year. That represents a staggering shortfall of around 12% of the total VAT tax revenue collected.
With that in mind, all European tax agencies are increasingly making concerted efforts to reduce that loss. They are especially looking to work in a proactive manner by conducting audits upon companies who sell goods using E-commerce platforms.
The Implications
Non-payment of international VAT is always considered a serious offense. If your business is found to be non-compliant then you will potentially become liable for a fine and the repayment of any owed VAT.
This can be particularly onerous if you had not placed sufficient funds in reserve against such an emergency.
In addition, the relevant Tax Authorities also have the power to demand that your E-Commerce platform suspend or de-activate your account, therefore cutting off the very lifeblood of your sales.
The Solution
Whether you are looking to take action to plan against this eventuality, or already have an ongoing investigation against you, AVASK are always on hand to provide your business with comprehensive solutions tailored to your circumstances.
Our knowledgeable and professional team have a wealth of experience in helping businesses to ensure that they meet their obligations to the relevant tax authorities.