Global Supply Chains and VAT: a Crimp in Cash Flow

Corporations in a wide variety of sectors are rapidly transforming their supply chains.

The core goals of supply chain globalisation and automation are operational and to achieve financial benefits. However, many companies overlook the impact of indirect taxes – like value added taxes (VAT) – that are assessed by the countries in which they operate.

Companies must consider the impact of VAT compliance as part of their supply chain strategy from the start, with a proactive global approach, to minimise risks and disruption to their business.

Cash flow is where companies feel the most immediate impact of VAT, since they have to collect and remit VAT receipts to tax authorities in each country in which they operate.

Source: SOVOS

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