How big is VAT underreporting in the B2B sector?
VAT / GST is a major source of revenue in most countries. On average, VAT underreporting and fraud can do significant damage to government revenues.
VAT is adopted by 175 countries
19 more countries, notably the United States of America, have instead adopted a sales tax. 20 states have no broad-based consumption tax regime.
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VAT accounts for 20% of total tax revenues
VAT represents 20% or more of total taxes in 21 of the 37 OECD countries that operate a VAT.
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6.7% is the average share of VAT to GDP in OECD countries
The average VAT rate in OECD countries is 19%.
Learn moreHow does traceCORE help?
TraceCORE B2B E-Invoicing automates VAT reporting and tax accrual for transactions between legal entities and entrepreneurs subject to VAT.
Book a demoIncreases VAT collection by addressing major VAT avoidance schemes
Eliminates the barriers to VAT compliance
Provides a single integration point for accounting systems and core tax system
Improves tax audit efficiency
How does traceCORE work?
- Taxpayer submits VAT invoices via tax portal, or from their accounting software using APIs
- The system provides format and logical verification of incoming data
- The system doublechecks VAT rates, aggregates the data and calculates the gaps
- When the gaps are discovered, electronic claims are created and sent to the taxpayer for justification
- Taxpayer submits adjustments to VAT returns or provides justification
- The system closes the audit with a decision to refund the taxpayer
VAT relationships tree helps identify fraud schemes
- Manual or automatic fraud identification mode available
- Counterparties matching tool helps identify complex VAT optimization schemes
- Traceability function reveals transaction sequences from where the tax gap occurred to the end beneficiary
- Taxpayer’s risk estimations available for deeper analysis
Key features
Automatic VAT fraud detection
A variety of tools available to identify most common VAT fraud schemes that lead to VAT leakage.
Integration with the Core Tax System
Integration with the Core Tax System
ERP Integration
Data upload and filing from ERPs to avoid human errors and streamline the tax filing process
Taxpayer Communication System
The system is integrated with the Core Tax System and allows to automatically communicate with the taxpayer
Complex VAT Gap Administration
Complex VAT Gap Administration
Dashboards and Reporting
Fully customizable dashboards and reports provide valuable insights for data-driven decision-making.
A win-win solution for all stakeholders
E-invoicing revolutionizes the traditional invoicing process by decreasing expenses, enhancing accuracy and enabling quicker payment transactions to the benefit of all parties.
- Governments can significantly improve VAT collection which is a major source of revenue in most countries.
- Streamlining payment processes reduces the administrative pressure on compliant businesses, which in turn benefits the country’s investment climate.
- By embracing e-invocing, businesses minimize the risks of non-compliance to VAT legislation.
- Streamlined processes lead to better transparency and reduced risks in business to business transactions.
- The cost of VAT administration is reduced compared to traditional invoicing.
- Going digital supports ESG compliance and reduces paper-related costs.
- The system helps detect fraud and take immediate action on violations.
- VAT audit becomes faster and more efficient compared to post-audit approach.
- Improved accuracy in VAT reporting contributes to a more robust and sustainable tax system.
Why choose traceCore?
Simple tax gap visualization
The system collects VAT-related data and makes a clear of the simple tax gap.
Error-free VAT administration
Fast and scalable automated VAT Administration process independent of subjective judgement.
Improved data quality
Automated VAT data collection eliminates human error, reducing VAT administration and tax audit costs.
Complex tax gap analysis
Identifying complex tax gaps, optimization schemes, their participants and beneficiaries.
