A number of multinational companies acting cross border experience more administrative, cash flow, timing and other indirect tax related hurdles as VAT rates are rising and VAT amounts on the tax authorities bank account and related admin is rising. The Deloitte VAT Attractiveness Index presents an overview of VAT related factors that could influence multinational companies' (MNEs) in terms of administrative ease, cash flow, ERP impact and operational handling.
- Implementation of simplification measures provided by the VAT Directive in the various countries.
- Measurable factors such as, possibility of forming VAT groups, availability of import licenses for deferring payment of import VAT, warehousing and use of VAT zero rates, opportunities for VAT bad debt relief, etc; and also
- Less measurable "soft" factors that could be of importance such as possibility of obtaining certainty on tax treatment form the authorities, speed of handling refunds and complaints, administrative delays, and general approach of the tax authorities