VATupdate Newsletter Week 23 2025

OCTOPUS

Did you know that octopuses have not one, but nine brains? Yes, nine! One central brain controls the animal overall, but the other eight are distributed in each arm, allowing them to literally “think with their arms.” Add to that: three hearts, each with a unique role in circulating blood through their body, and you have one of nature’s most wildly complex creatures.

This is not just fascinating stuff for scientists, but it’s also a surprisingly perfect metaphor for the world of VAT management in multinational companies.

Like the octopus with multiple brains coordinating a single complex organism, managing VAT across multiple countries means juggling numerous “brains” — different rules and interpretations, local compliance requirements, and diverse reporting systems. Each “brain” focuses on its local environment, yet all must work together seamlessly to keep the whole business healthy.

If you’ve ever tried to coordinate VAT compliance for a group operating in multiple countries, you’ll recognize the challenge. One misstep in any “brain” — an incorrect VAT rate, a missed invoice, or a delayed filing — can send shocks through the entire system, just as an octopus arm acting independently could cause chaos without central coordination.

The VAT twist? Just as the octopus’s arms send signals back and forth to its central brain, multinational VAT teams must ensure robust communication and synchronization. The increasing use of centralized VAT technology platforms, shared compliance tools, and harmonized VAT policies within the group are the equivalent of creating a “nervous system” that helps all “brains” think as one.

But beware — just like the octopus relies on three hearts to keep blood flowing under pressure, your VAT system needs multiple safeguards to stay compliant: internal controls, risk management processes, and ongoing training. When any heart falters, the whole system risks failure.

So next time you feel overwhelmed by the complexity of multinational VAT, think of the octopus — an extraordinary creature thriving by balancing many brains and hearts. With the right structure and coordination, your VAT compliance can do the same.

And you always have VATudate.com for your latest news and guidance through the complex VAT world.

If you have any comments, questions, or ideas that you want to share with us, please send us an email at [email protected] or leave a comment under the posts of this newsletter on LinkedIn.

To go directly to the region, click below: