This blog is an excerpt from Sovos’ Annual VAT Trends report. Please click here to download your complimentary copy in full.
VAT requirements and their relative importance for businesses have changed significantly in recent years. For data that is transactional in nature, the overall trend is clearly toward various forms of continuous transaction controls (CTCs).
The first steps toward this radically different mode of enforcement, known as the “clearance model”, began in Latin America in the early 2000s. Other emerging economies, such as Turkey, followed suit a decade later. And today, many countries in the Latin American region now have stable CTC systems where a significant amount of the data required for VAT enforcement is based on invoices, and other key data is harvested and pre-approved directly at the time of the transaction.
Source: SOVOS
