- Traditional VAT compliance relied on indirect methods like statistical comparisons and sample-based audits due to limited transaction visibility.
- Compliance previously meant having consistent processes and being able to justify discrepancies within accepted thresholds.
- E-invoicing gives tax authorities real-time, line-level access to all transactions, enabling automated, comprehensive analysis.
- Errors, even if rare, are now easily and automatically detected, making the old standard of “mostly accurate” processes obsolete.
- Continuous Transaction Controls (CTC) represent the new compliance paradigm, with full visibility and automated anomaly detection.
Source: fincargo.ai
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.
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