Jurisdictional VAT
Overview
The custom Jurisdictional VAT (JV) module provides two key functionalities to simplify and ensure VAT compliance:
- Transaction segregation for VAT submission: This feature segregates transactions by jurisdiction for companies VAT-registered in multiple jurisdictions. It enables accurate allocation of transactions, simplifying VAT reporting and submission for each region.
- Currency conversion for local VAT compliance: For companies operating in a currency different from the jurisdiction’s currency, this functionality converts VAT-related transactions into the appropriate local currency. This ensures precise reporting that aligns with local VAT regulations.
Common Challenges
- Complex VAT submissions: Managing VAT reporting across multiple jurisdictions without proper segregation is error-prone and inefficient, increasing the risk of non-compliance.
- Currency incompatibility issues: Businesses operating in jurisdictions with different currencies may struggle to generate accurate reports. For example, companies registered in the UK cannot directly set up reporting in EUR without additional functionality, which the JV module resolves.
The Solution
This tool is particularly valuable for businesses operating across multiple jurisdictions or managing varied regulatory and currency requirements.
Benefits:
- Ensures VAT compliance: Businesses can meet the specific and often complex VAT regulations of the jurisdictions in which they operate.
- Enables streamlined processing: Once transactions are segregated and converted, users can utilise standard local VAT tools to process submissions effectively and maintain compliance.
