Michaela Merz

VATwatch – A solution that helps you identify your VAT risk exposure and gain valuable business insight

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How can VATwatch help you manage VAT risk and gain valuable business insight?

What’s the problem?
Being in control of your VAT data is becoming more crucial than ever. This stems from the fact that the tax authorities could have more information about your company’s VAT operations than you do. How is this possible?

It’s down to the growing complexity of the indirect tax compliance and control framework and the emergence of new reporting requirements globally. In response to these developments, tax authorities are no longer conducting sample checks, since they can use instant access to a company’s ‘raw’ accounting data and scan them to assess its VAT liability.

If you don’t have proactive control processes to review your transactional data and take action before this information is transmitted to the tax authorities, the consequences can be severe: more VAT audits, and increasingly complex questions from the authorities.

How can VATwatch help?
PwC’s VATwatch solution gives you a global overview of your flows, and helps you detect potential discrepancies and mismatches within your data before they’re identified by the tax authorities.

VATwatch makes life easier for VAT and tax managers by:

  • Accurately identifying discrepancies and errors
  • Boosting internal audit with a clear list of exceptions identified, risk assessment and action plan
  • Enabling flexible application to allow targeted, data driven controls with sampling focused only on suspected records
  • Providing insight on how transactions were actually executed in systems
  • Demonstrating the high standard of your control framework

VATwatch reinforces the indirect tax function of the future by:

  • Properly assessing the materiality level of each type of risk
  • Providing a standardised approach to VAT verification
  • Enabling a holistic review of transactional data

How does VATwatch work?

    1. VAT risk analysis using interactive dashboards covering all your data
    2. Selection of key risks and relevant tests; detailed automated testing of VAT transactions
    3. Analysis of test results, follow-up on observations and action plan development

Wide coverage
Output and input VAT, goods and services, Swiss and EU VAT, industry packages

Big library of VAT tests
Library of tests covers all key VAT aspects, from sanity checks to chain transactions & triangulation

ERP-agnostic
Data from any system can be analysed, including standard (SAP, Oracle, etc.) and in-house systems

Qlik Sense visualisation
Easy-to-review dashboards using statistic tools, decision tree, results of tests and risk assessment. Ability to drill down into transaction level

Risk detection
Catalogue of pre-defined risks (comments for each test), clear assignment of risk categories with redflag level assessment, and recommended actions for each irregularity

 

 

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