The Why and How of Effectively Managing Global VAT

Due to the proliferation of VAT in combination with trade globalization, the upward trend for VAT rates, and increasing compliance scrutiny by tax authorities, the management of VAT has become important to U.S. businesses involved in cross-border trade. This article explains how companies should design a VAT strategy and build a control framework for VAT. Adequate VAT management is imperative to avoid non-compliance in terms of under- or overpayment of taxes and associated interest charges and penalties.