How is digitalization affecting professionals: Is the tax profession ready? Jaroslav Beneš 24 November 2017

Transcription

1 How is digitalization affecting professionals: Is the tax profession ready? Jaroslav Beneš 24 November 2017

2 Agenda The move towards e-audit Overview of the current European landscape Real-time reporting and other variations SAF-T solutions (projects and technology) What next? Questions and answers

3 The move towards e-audit

4 The Evolution 1987 A.D A.D. Accounting, Babylon, 3000 B.C.

5 How does the Tax reporting evolve over time? From paper to electronic Paper based Electronic submission E-Audits and SAF-T Yesterday Manual keying of data Slow and uncertain transmission of returns Risk of loss of documents and penalties Sample-based approach for audits Today Automatic or semi automatic keying of data Automatic production of reporting documents Some e-filing/cross checking of information Direct audits of ERP systems/ accounting software Checks after submission Tomorrow or today? New for of electronic checks Evidence at the hands of tax office On-line reporting Audits: faster, cheaper, more efficient Death of tax return Checks before submission Changes in ERP and tax systems Different profiles Data analysts / IT skill Changes in preparation tests before submission

6 Recent reporting developments Tax authorities are: Collecting more detailed customer data and sharing this data Employing sophisticated interrogation techniques Understanding the wider business (e.g. projects, supply chains, inventory, fixed assets) Focusing on a risk-based approach Multiple requests for information: Most of the requests below have been initiated in the last few years placing additional burdens on the tax function, and also the wider finance function Standardised data e.g. SAF-T, XBRL/iXBRL, CRS Industry legislation e.g. FATCA, CRS E-audit filings e.g. SPED, SAF-T, SII Non-financial information e.g. logistics E-invoicing e.g. Europe, South America Global legislation e.g. BEPS TP Documentation and Country by Country Reporting Accounting filings e.g. XBRL, ixbrl System sign-offs e.g. SAO Data Analytics e.g. IDEA Payroll data e.g. Real-time data in UK

7 A snapshot of SAF-T, real-time reporting and e-audit Luxembourg SAF-T applicable OECD SAF-T based: GL, invoices, payments, customers, suppliers, tax table France Reduced SAF-T applicable Data of statutory accounting Portugal SAF-T applicable GL, supplier and customer info, tax table, invoices, product tables Both monthly and upon request Spain Spanish SII implemented in 2017 Brazil SPED system Disclose full invoice details before obtaining valid invoice number On a regular basis Key E-audit with standard audit file (SAF-T) Implementation of SAF-T expected in 2017 or 2018 Equivalent SAF-T file on regular basis E-audit, but no SAF-T No E-audit, no SAF-T Not applicable or no info UK Making Tax Digital (MTD) Digitisation of tax submissions Frequent updates Austria SAF-T applicable Depends on requested information Slovenia Standardised file VAT ledger and VAT calculation data Netherlands SAF-T applicable (XAF) Financial GL Data Optional regime South Africa IT14SD reconciliation of return to ledgers for Income Tax, VAT, PAYE, and Customs Norway SAF-T expected in 2018 Czech Republic Comprehensive invoice details due with every tax return Germany SAF-T applicable (GDPdU) Depending on the scope of audit Hungary Data export function on invoicing software since 1 January 2016 Online connection established between invoice invoicing software and the tax authorities system as of 1 July 2017 Lithuania SAF-T applicable (i.saf) for VAT invoices (issued & received), also additional customs info On a regular basis since 1 October 2016 Kazakhstan SAF-T expected in 2018 Russia Comprehensive invoice details filed with VAT return Poland SAF-T applicable (JPK) since 1 July 2016 Monthly submission of VAT ledger Several other files upon request (bank statements, warehouse info, comprehensive GL info) to be available upon request China Golden Tax system Disclose full invoice details before obtaining valid invoice number No SAF-T or E-audit Singapore Simplified SAF-T: IRAS Audit File (IAF)

8 Current overview of European landscape

9 Country variations Current landscape in Europe SAF-T Luxembourg France SAF-T applicable (FAIA) OECD SAF-T based: GL, invoices, payments, customers, suppliers, tax table Germany SAF-T applicable (GDPdU) Depending on the scope of audit Netherlands SAF-T applicable (XAF) Financial GL Data Optional regime SAF-T and e-reporting Lithuania SAF-T applicable, to be provided upon request, since 1 January 2017 i.saf for VAT invoices, also additional customs info on regular basis since 1 October 2016 Portugal SAF-T applicable (but only VAT) To be provided monthly Reduced SAF-T applicable (FEC) Data of statutory accounting Greece Electronic File to be available within one month after the filing deadline of the annual CIT return Complete data of the statutory accounting Hungary SAF-T reporting with data export function on invoicing software since 1 January 2016; Upon request Austria SAF-T applicable but in practice case by case; Upon request For cash transactions, obligation approval invoice since 1 April 2017 Poland SAF-T applicable (JPK) to be available upon request since 1 July 2016 Monthly submission of VAT ledger Iceland Ireland United Kingdom Spain Portugal Slovenia Standardised file (limited) to be provided upon request VAT ledger and VAT calculation data on quarterly basis For cash transactions, obligation for approval of invoice with unique code (since 2 January 2016) Norway Sweden Denmark Netherlands Germany Poland Belgium Luxembourg Czech Republic Slovakia France Austria Switzerland Hungary Slovenia Romania Croatia Italy Estonia Latvia Lithuania Greece Finland Bulgari a E-audit and electronic pre-approval Croatia For cash transactions, obligation to have real time approval of invoice with allocation of control invoice number Cyprus Russia E-reporting Russia Sales and purchase journals are part of the quarterly VAT return Bulgaria Sales and purchase journals should be submitted along with the monthly VAT return Since July 2017, a new electronic service where client can check whether the VAT, which it claims for deduction, has been correctly accounted for by the supplier Italy Spain Keys: Invoice details and data computation to be communicated on quarterly basis since 1 January 2017 SII Invoice information within 4 days (8 days until 2018) since 1 July 2017 SAF-T E-reporting SAF-T and E-reporting Only E-audit Upcoming changes No E-audit Invoice preapproval/number request Requirement for cash payment Czech Republic Comprehensive invoice details due with every tax return (but no e-audit) Czech Electronic Records of Sales (EET) with fiscal identification code for retail and wholesale in case of payment in cash, cards, checks, bills of exchange or similar means (direct bank account transfers not in scope) since 1 March 2017

10 Country variations Examples of current variations in data elements Overview of required table/ data elements Poland JPK Germany GDPdU Luxembourg FAIA France FEC Spain SII Italy Lithua nia Singapore IAF Slovenia GL including Journals N/A N/A Trial Balance N/A N/A N/A N/A Invoice data including VAT data ** *** * ** N/A Customer and Supplier master data N/A N/A N/A Subsidiary ledgers N/A N/A N/A N/A N/A N/A N/A N/A Bank account statement / Payment data N/A N/A N/A N/A N/A N/A VAT registers N/A N/A N/A N/A Materials/Inventory data & Warehouse data: Goods received note, goods dispatch note, goods issue note, interwarehouse transfers N/A N/A N/A N/A Fixed asset data N/A N/A N/A N/A N/A Payroll / Wage taxes N/A N/A N/A N/A N/A N/A N/A N/A Insurance taxes N/A N/A N/A N/A N/A N/A N/A N/A VAT calculation and filing methods N/A N/A N/A N/A * N/A N/A N/A * Quarterly basis ** Monthly basis *** Within 4 days (8 days until end 2017) Key: N/A In scope Not required

11 Real-time reporting and other variations

12 Spain Suministro Immediato de Informacion New obligations on transactions recording The new Anticipated Electronic VAT Reporting System (SII) entails the electronic supply, through the Spanish tax authorities online platform, of billing registries which are part of the VAT ledgers Deadline to submit the information Issued invoices: Four days from its issuance. If it is issued by the recipient or a third party, eight days. Anyway, always before the 16 th day of the following month from the accrual date Received invoices: Four days from its accounting. Always, before the 16 th day of the following month from the accrual date Imports: Four days from the date on which the accounting document (in which the VAT quota is indicated) was registered. Always, before the 16 th of the following month from the accrual date Saturdays, Sundays and national holidays are excluded from counting Temporary period (1 July 31 December 2017): Deadline is extended from four to eight days Billing by a third party: Eight days Key issues Dates of implementation Entry into force by 1 July However, the VAT ledgers covering the first half of 2017 must be submitted before 1 January 2018 Mandatory for large entities, VAT grouping, and companies included in the Monthly VAT Refund Registry REDEME (62,000 taxpayers more or less = 80% of VAT revenues in Spain) Optional for taxpayers who voluntarily want to enroll in the system, by submitting the corresponding census form Ways of submission Ongoing basis through a web service from the Spanish tax authorities online platform Taxpayers with few operations could report the information through a web form

13 What next

14 Main trends in the tax reporting The scope and speed is increasing Light Appr. / Depr. of Assets Warehouse movements SKU Master data Payments Asset register Customer Master data Supplier Master data Invoices Cach Receipts Declaration Scope Speed

15 The light at the end of the tunnel Processes Systems People New tax reports (e.g. Control statement) Data quality important New checks and test Use of external information (e.g. registers) ERP changes Special tax SW New excel models Data analysts Developers

16 Contacts Jaroslav Beneš T&L Chief Technology Officer Tel.:

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