National Tax Authorities and the RTvat solution
The RTvat solution provides huge advantages for national tax authorities in each member state. By streamlining the collection of VAT, rationalising cross-border transactions and automating both collection and reclaims in real-time, compliance ratios will be greatly improved, collected revenues massively increased and the incidences of fraud significantly reduced.
Automated systems will enable tax authority resources to be more usefully deployed to fraud detection, aided by RTvat's sophisticated 'fraud scrubbing' neural networks.
- By moving to real-time settlement, the potential for missing trader fraud and carousel fraud totally disappears, and potential for other losses due to bankruptcy, mismanagement and inefficiency is drastically reduced.
- By establishing a cross-border data and funds transfer system, funds due to each member state’s Tax Authority can be collected at the applicable rate due in the buyer ’s country, with refunds due in the seller ’s country, and the correct net amounts paid directly to the appropriate Authority at the prevailing rate.
- Using the neural network, potential fraudulent activity can be rapidly identified and flagged for action in time for the Tax Authority to delay the release of the credit.
Join RTvat - tax authorities making an impact on VAT changes!
"Across Europe, efforts are focusing on the better exchange of information between national police forces and customs officers, though contra trading makes that harder than ever. Longer term, says European Union tax commissioner Laszlo Kovacs, the EU will need to change its VAT system to prevent the fraud."
The Guardian, Tuesday May 29 2007
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