VAT and indirect taxes

In recent years, governments around the world have modified VAT and other indirect taxes to stabilize their tax base.

However, due to the increasing attention of tax authorities at both national and international levels, VAT and indirect taxes have become more important for companies operating internationally in particular. The growing complexity—mainly caused by constant changes in jurisdiction and legislation, as well as partial lack of harmonization between EU member states—not only makes it more difficult to correctly assess any special issues for indirect tax purposes but also to comply with global VAT and indirect tax obligations on a day-to-day basis. Additionally, it has already become evident that the COVID-19 crisis will impact business supply chains, raising a range of VAT and indirect tax issues.

With companies facing significant penalties (including personal fines for management) for non-compliance, VAT and indirect taxes have risen on the corporate agenda.

We provide the support you need to comply with your VAT and indirect tax obligations.

Typical risk areas for companies:

• VAT groups, especially monitoring respective requirements (e.g., internal guidelines, changes of directors)
• Implications of the EU Action Plan, e.g., “Quick Fixes” 2020, e-commerce package 2021, final VAT system 2022
• Warehouse concepts and related VAT/customs issues
• Chain transactions, e.g., allocation of “mobile supply,” application of triangulation rules
• Import of goods (e.g., tariff codes, deduction of import VAT)
• VAT qualification, especially in holding structures
• Deduction of input VAT (e.g., VAT group, holding, valid VAT invoices, pro-rata)
• Sales structures and their VAT implications, e.g., “buy and sell,” commission model, agency structure, relationship headquarters, and permanent establishment
• Transfer pricing adjustments and their VAT and customs implications

Our approach

VAT and indirect taxes are transaction-driven, complex, and can have a significant impact on your results. At Forvis Mazars, we can assist with VAT and indirect taxes throughout the business lifecycle—from company formation to detailed transaction structuring and litigation support.

International cooperation is particularly important in VAT and indirect taxes. Therefore, in addition to your regular partner responsible for the mandate, your assigned VAT and/or indirect tax expert is available to answer all your VAT and indirect tax questions and act as a sparring partner when necessary. We have deep national and international experience from a team of tax advisors, tax law specialists, auditors, and management consultants. Our Global Indirect Tax Group comprises a worldwide network of specialists advising companies exclusively in the field of indirect taxes, such as VAT, customs, foreign trade law, and excise duties.

With our presence in almost every European country and globally in all major economic centers, we address your VAT and indirect tax challenges and help you comply with your obligations wherever you are.

While customs law is harmonized under the EU Customs Code, VAT and other indirect taxes are affected by court rulings and changes in both national and international legislation. This makes it even more important to have a team of internationally recognized experts by your side to keep you constantly updated.

Our services

• Comprehensive advisory services on general or specific customs and VAT issues
• Identification and management of VAT and indirect tax risks
• Handling customs and indirect tax litigation due to non-compliance or investigation
• VAT/customs audit support and scanning
• VAT and indirect tax compliance impacting supply chain management and business model optimization (BMO)
• VAT and indirect tax advisory during M&A processes (including due diligence and drafting/verifying VAT clauses)
• “VAT Group Cross-Checks”—analysis of group structure and processes
• VAT risk management concepts, including guidance on Tax Compliance Management Systems (TCMS)
• Brexit-related VAT and indirect tax advice
• VAT and indirect tax consulting as an interface between VAT/customs law and criminal tax law
• Representation in appeal and financial court proceedings
• VAT advisory services related to IT implementations (e.g., review of tax codes, SAP S/4 HANA)
• VAT and customs compliance outsourcing
• National and international staff training, tailored to various functional areas (e.g., sales, procurement, accounting)
• VAT reviews (“Health Checks,” “Digital VAT Scan”)
• Preparation of (electronic) manuals, especially for marketing and sales use (“contract-aware design”)
• Export control compliance consulting
• Assistance with binding tariff information (BTI) and Authorized Economic Operator (AEO) applications

Our tools and solutions

• VAT Comparison Tool: Offers clients insights into VAT jurisdictions worldwide, providing an initial overview of VAT.
• VAT Verification Tool: A fully integrated software solution. We provide the solution you need: quickly and personally via our Managed Service, simply and permanently online via self-service, or fully automated through ERP integration.
• Signals / InControl: Our VAT and indirect tax team uses globally accessible tools, such as our communication platform Signals and the InControl dashboard.
• Custom IT tool development: We value ongoing, close contact with our clients. For IT tools and solutions, we focus on market-driven product development, preferably in collaboration with our clients.

Our people

As its importance grows, VAT and indirect taxes are becoming increasingly complex.

The Forvis Mazars Global VAT & Indirect Tax Group is well-prepared to assist you: fast, competent, and practical. Our VAT and indirect tax team takes a proactive, integrated, solution-oriented approach with decision-making guidance.

We have extensive experience in industries facing complex cross-border VAT and indirect tax issues, such as real estate, energy, healthcare, and automotive.

Our VAT and indirect tax experts regularly contribute to specialized publications and actively participate as speakers, both locally and internationally, internally and externally. Additionally, we produce our own specialized publications.

We regularly offer clients the opportunity to network with industry representatives, tax authorities, associations, and Forvis Mazars experts at international conferences (e.g., International Tax Conference, Global VAT & Indirect Tax Client Conference).