3 reasons the US needs to be educated about new global VAT changes
After a challenging few years, global trade is ramping back up. As more companies enter the marketplace and expand their operations across international borders, compliance is one thing that is sitting at the top of everyone’s minds.
After all, you don’t want to play around when it comes to global compliance. The results could be fees, fines, or restrictions imposed on your business. Tradeshift enables organizations to conduct business with suppliers worldwide as we support global electronic invoicing and tax regulatory compliance with coverage of more than 50 countries all on one platform – including both post-audit and clearance models.
With many countries and regions implementing new regulations in the short term, ensuring your company remains compliant can be tricky. In the next few years, many global changes will impact Value Added Tax (VAT) and compliance measures for Americans, even if the changes aren’t taking place there.
Here are 3 reasons why the US should be keeping an eye on VAT changes around the world:
It ensures compliance
One of the top concerns with modern global enterprises is the risk of fees, fines, and production impacts from a lack of compliance in the countries you operate or trade. The global trade marketplace is almost always changing, with new regulations and tools evolving and emerging each day. To safeguard your business, you need to be keeping up with the latest changes.
While the United States uses a different approach to taxing goods and services coming in and leaving its borders, that doesn’t mean it can afford to ignore the changes taking place across the globe. Supply chain and logistics professionals have to stay educated on what legal boxes need to be checked off before sending products outside their country.
We understand that keeping informed on these changes can be time-consuming. We also get that you likely are focusing most of your attention on other aspects of your business that require strategic oversight. That’s why Tradeshift handle the compliance aspect for you — so you can devote your time to the management of your operations.
Alongside tax compliance experts, Sovos, we can help secure your company from risk and fines across a large number of countries. With a focus on e-invoicing and tax compliance, our strategic partnership helps you expand the reach of your operations without any concern.
It deepens your global ties
One of the biggest trends we’ve seen in the workforce is the adoption of remote work. Companies are no longer bound to the confines of an office, meaning your workforce might be operating in different cities, states, or even countries. This has increased the implementation of advanced tools and technologies that have made distance obsolete when it comes to business.
Conducting global trade is easier today than it was in the past, even with the current strains supply chains face. To prioritize growth and success for your enterprise, you need to be considering the impact of the global economy on your industry. The changes in the UK from Brexit are more relevant to your business than you’d expect.
With clearance models either in place or being implemented across Latin America and Europe, most companies that trade internationally will be impacted. In fact, in September 2021, the French Government published an ordinance concerning the new requirement to transmit electronic invoicing and payment data.
This ordinance specifies the overall framework for economic operators and the flows of sales and purchases subject to the new requirement. Tradeshift’s solutions help our customers to adapt to potential disruptions in today's space.
It helps you forecast for the future
A common theme throughout this article is the need to be educated on the current state of the market and informed about the future of work. The past few years have placed significant pressure and strain on countless industries and businesses, and one thing was clear — you need to be aware of potential troubles before they occur if you hope to weather the storm.
When it comes to tax and e-invoicing compliance, Tradeshift and Sovos are the go-to experts for information about the current market conditions, emerging trends, and forecasting future changes to regulations and compliance measures. With years of experience and a team of experts constantly studying the industry and market, you can rely on us for the most intelligent and updated information.
What does this mean for you?
It gives you peace of mind and gives you back time in your day to act more strategically. You can tap into our knowledge to help you make an informed decision about the direction of your company and can rest assured that you’re prepared for potential future disruptions or changes.
Tax compliance is a critical part of your business processes. Tradeshift’s strategic partnership with compliance specialists Sovos helps educate you on the changes to tax compliance and ensures your team is prepared for the future. To learn more about this partnership or stay updated on the current and future changes to international tax compliance, be sure to contact Tradeshift today.
