- Continuous Transaction Controls (CTCs) involve real-time transmission of invoice data to tax authorities.
- CTCs aim to modernize VAT compliance and increase transaction transparency.
- They represent a shift from periodic returns to live reporting for businesses in multiple jurisdictions.
- CTCs are introduced to reduce VAT fraud and improve revenue collection.
- Traditional VAT reporting is prone to errors and delays.
- CTCs require businesses to send invoice data directly to tax authorities for real-time monitoring.
- Benefits for tax authorities include increased visibility and reduced fraud.
- Benefits for businesses include improved data accuracy and reduced audit risk.
- Challenges include high compliance costs and ERP integration.
- CTCs use government-mandated platforms for data collection in digital formats.
- Implementation varies across Europe with different models in Italy, Spain, Hungary, Poland, Romania, and France.
- The EU is moving towards a harmonized CTC model, but progress is slow.
Source: fintua.com
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Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
