VAT and Shared Service Centres

Businesses are increasingly looking to the shared service centre (SSC) model to manage their back office functions. These can create major benefits in terms of cost savings and spreading practice firm-wide. However, placing VAT-impacted functions from multiple jurisdictions in SSC’s can create several challenges:

• If invoices are issued to several jurisdictions they must be complaint in each
• If invoices are received and processed from several jurisdictions they must be checked against the correct requirements for each
• If VAT compliance data is prepared in an SSC it must be sufficiently accurate and timely to satisfy the requirements of the jurisdictions involved
• If VAT registrations are managed from an SSC, you need the language and technical skills to ensure compliance

Essentia can help SSC’s with:

• Process and quality control reviews
• Drafting of VAT process controls and documentation
• Focussed, relevant training for SSC staff
• Audit of invoice files to ensure compliance with VAT requirements
• Support during ERP implementation and update
• Outsourcing of local VAT compliance or VAT recovery