The rise of pre-populated VAT returns

Expansion of Pre-Populated VAT Returns: European tax authorities are increasingly adopting pre-populated VAT returns, which are automatically generated using transaction-level data, to enhance efficiency, reduce manual errors, and accelerate compliance. Countries like Hungary, Romania, Portugal, and Slovenia have implemented these systems, emphasizing the importance of high-quality data.
Challenges in Implementation: Businesses face significant challenges with pre-populated returns, including the need for continuous transaction-level monitoring, data reconciliation across multiple systems, and ensuring compliance with local formats and cross-border reporting requirements, particularly for non-established companies with limited operations.
Preparation for Compliance: To adapt to the pre-population regulations, businesses must ensure that transaction-level data is accurate and accessible, integrate their VAT reporting systems with data sources, and establish robust processes for real-time data validation and automated report generation to meet evolving digital reporting requirements.

Source Fintua

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