Business and business associations

Business and the real-time VAT solution

There are three main value points for businesses in bringing in the RTvat solution:

1. Reduction of administrative costs. This is a major factor for both small and large companies. It is important to realize that the alternative solution currently being discussed (known as the 'reverse charge' system) creates far more administrative work for businesses, particularly in the scenario where it is run in parallel to the existing system.

2. Reduction of risk. For SMEs in particular, there are many circumstances in which businesses suffer financial problems, and even bankruptcy, due to using the delayed settlement procedure for paying their VAT – and then realizing they have overspent.

3. The ‘level playing field’ for EU businesses is frequently less smooth than planned; the format of RTvat for intra-EU transactions is fair, available for real time recovery of VAT spent, and encourages far more trade overall.    

VAT card – legitimate business validation

The use of the purchasing card for VAT registered businesses to use in business-to-business transactions has the added benefit of providing a validation of their legitimacy and financial status. It can also act as a 'VAT passport' for intra-EU transactions, ensuring that both sides of the busines can be confident that the deal will complete and the tax authorities satisfied.

Getting involved in the design and policy making

RTvat will make all of its committee structures and procedures open to all members and associates through blogs, email messaging and open meetings. The intention is to partner with other business organizations, individual businesses and other interested parties within the EU and beyond to get additional feedback and integrate ideas on how to improve the overall approach.

To make sure your voice is hear as part of the RTvat solution, > contact us now

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