April 2012 – Source: KPMG
Despite the shift to indirect tax globally a new survey released by KPMG International shows that businesses are simply not keeping pace. In fact, according to KPMG International’s 2012 Benchmarking Survey on VAT/GST, VAT/GST continues to be under-resourced, under-managed and under-measured by the majority of global businesses.
This year’s survey builds on the success of the first ever global VAT/GST benchmarking survey, published by KPMG in 2011, with new questions and comparative analyses for 225 respondents headquartered in 24 countries.
Highlights from the survey
Significant opportunities are being missed to manage risk more efficiently and effectively, improve cash flow and reduce bottom-line cost.
There is greater evidence of quality VAT/GST management in Europe, the Middle East and Africa (EMEA). In Asia Pacific (ASPAC) and Latin America (LATAM), however, businesses should be concerned about how compliance risks are being managed.
On average, larger businesses demonstrate higher levels of performance benchmarking and resource allocation to VAT/GST. Businesses in the financial services sector are much more likely to judge the effectiveness of their tax department with VAT/GST in mind and set key performance indicators (KPIs) to do just that.
Compared to the 2011 survey results, there is tangible evidence that some businesses have started to take steps in the right direction to deliver effective VAT/GST management on a global scale, although there is still a long way to go to keep pace with the obligations, risks and opportunities which the shift to indirect tax globally is creating.