B2B Sector E-Invoicing
Digital VAT administration can increase annual tax collection by up to 150%.
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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.
is the average VAT Gap worldwide
is the estimated overall damage suffered by EU countries in 2023 as a result of VAT fraud (EPPO)
VAT Is Adopted by 175 Countries
According to VATCalc, Value-Added Tax (VAT) has been implemented by 175 countries worldwide. 19 more countries, notably the United States of America, have instead adopted a sales tax. 20 states have no broad-based consumption tax regime.
VAT Accounts for 20% of Total Tax Revenues
The OECD reported a slight increase in VAT revenues across OECD countries between 2020 and 2022 on average. 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
As stated in the Consumption Tax Trends 2024 report by the OECD, the average standard VAT rate across OECD countries saw a slight increase in 2024, reaching 19.3%.
How does traceCORE help?
traceCORE B2B E-Invoicing automates VAT reporting and tax accrual for transactions between legal entities and entrepreneurs subject to VAT.
Automatically generates and transmits invoices
Increases VAT collection by addressing major VAT avoidance schemes
Allows automatic communication with taxpayers
Improves VAT accrual and audit efficiency
Helps increase operational efficiency and tax compliance
Serves as a single point of integration with the Core Tax System
How does traceCORE work?
- The 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 double-checks 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.
- The taxpayer submits adjustments to VAT returns or provides justification.
- The system closes the audit with a decision to refund the taxpayer.
VAT Connections 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.
ERP Integration
Data upload and filing from ERPs to avoid human errors and streamline the tax filing process.
Dashboards and Reporting
Fully customizable dashboards and reports provide valuable insights for data-driven decision-making.
Taxpayer Communication System
The system is integrated with the Core Tax System and allows to automatically communicate with the taxpayer.
Complex VAT Gap Administration
traceCORE B2B E-Invoicing automates VAT accrual and audit.
Integration with the Core Tax System
traceCORE B2B E-Invoicing serves as a single point of integration with the Core Tax System.
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.
- Improvement of VAT collection which is a major source of revenue in most countries.
- Reduced administrative pressure on compliant businesses, which benefits the country’s investment climate.
- Traceability function reveals the chains of related counterparties and can be used to identify fraud schemes and to build taxpayer’s risk profiles.
- Mandatory B2B e-invoicing helps create a digital model of the country’s economy.
- Macro indicators can be automatically calculated and analyzed by region, inspectorate and taxpayer.
- 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.
- Reduced risk of human error and improved data quality.
- By embracing e-invocing, businesses minimize the risks of non-compliance to the tax legislation.
- Streamlined processes lead to better transparency and reduced risks in B2B transactions.
- The cost of VAT administration is reduced compared to traditional invoicing.
- Increased competitiveness between businesses by accelerating document flow.
- Reduced risk of human error and improved data quality.
- Going digital supports ESG compliance and reduces paper-related costs.
Why choose traceCORE?
Simple tax gap visualization
The system collects VAT-related data and visualizes the tax gap.
Error-free VAT administration
Fast and scalable automated VAT administration process independent of subjective judgment.
Improved data quality
Automated VAT data collection eliminates human errors, reducing VAT administration and tax audit costs.
Complex tax gap analysis
Identifying complex tax gaps, optimization schemes, their participants and beneficiaries.
