- Introduction of Continuous Transaction Controls (CTCs): CTCs require businesses to share invoice data with tax authorities in real time, shifting tax compliance from a post-audit approach to live validation, thereby enhancing transparency and reducing VAT fraud.
- Challenges and Preparation for Businesses: Companies face common challenges when adopting CTCs, including technical integration with government platforms, ensuring data security, adjusting internal processes, and training employees. Strategic preparation is essential, involving an analysis of current invoicing systems, identifying gaps, and considering future regulatory requirements.
- Benefits of CTCs: While initially viewed as burdensome, CTCs can improve operational efficiency through automation, reduce manual tax reporting efforts, enhance audit readiness, and lead to faster tax processing. Businesses are encouraged to assess their capacity to comply in-house or consider external solutions to navigate the evolving regulatory landscape.
Source ecosio
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