Tax risk rising from global economic activity

In recent years, various companies have set up overseas subsidiaries, branches, and representative offices, mainly for extreme yen appreciation and domestic market downsizing. Even if you do not actually set up bases overseas, there are many economic activities like "We purchase goods from overseas factories and send them directly to another overseas company and resell them". If such a scheme is carried out in Europe, it would be necessary to register the value added tax at the site depending on logistics conditions and contract conditions.

Monitoring by the European tax authorities has strengthened year by year. VAT may be imposed from the local tax authority suddenly to companies that did not implement the appropriate tax return in the Europe value added tax system. In many cases, the local tax office will discover your unpaid value added tax or discover unregistered VAT when conducting a tax investigation into your local business partner.

In such a case, the tax authorities will ask you to pay VAT, delinquent taxes or penalties. The value added tax in Europe is as high as 15% to 25%, and the damage suffered in the case of inappropriate tax filing or inappropriate undeclared has the threat of affecting profits. However, in the worst case scenario, you will not lose a lot of credibility. In particular, if a value added tax is imposed on past efforts, it is difficult to pass on to customers.

Under such circumstances, many Japanese companies are now in a state of confusion without expert tax knowledge on the value added tax for sales activities and purchasing activities in Europe

We are seeing many complicated examples of this. Even the overseas sales department does not necessarily have detailed knowledge of European VAT law. Do you hold business negotiations with tax concerns? One of the reasons for this is because we accept consulting projects from public institutions, are dealing with various cases, and are in charge of writing articles

At this time, I am surprised that even a large company does not have proper knowledge about the European VAT taxation system from the question received from the customer.

Besides that, there are many cases where we are issuing incorrect invoices and taxing correspondence. Nonetheless, it is rare that you have knowledge of the value-added tax system in Europe, as it conducts sales activities in Japan. Normally, even if you are an overseas representative, you can not properly deal with it, and there are many cases where you have decided on logistics conditions and other conditions at the sales site without proper information.

Focus on sales · purchasing · business support

Therefore, we have asked these Japanese companies to demand, the company was quick to introduce in-house training focusing on value-added tax treatment of business activities, purchasing activities and business support (accounting / general affairs) in large companies in Europe where I am performing.

At our seminar, we focus on cases of European VAT, and we are training on how the sales department, purchasing department and accounting department of your company should respond. I will answer properly to "raw questions" from sales people in particular, what kind of initiatives can be selected from various logistics conditions and what kind of logistics arrangements can be made to reduce risks and costs I will explain the point.

In this regard, the content differs from the seminar focusing on the method of extracting invoices at the time of VAT refund of travel expenses, which is normally done by a VAT refund agency, I will centre on methods of dealing with more advanced sales sites.

For example, what taxation is considered to be involved if foreign companies are included in your economic activities? And, if any tax should be taxed, how would you tell the customer as a salesman?

While corporate economic activities become more global, tax is not finished with "I did not know". We conduct seminars focusing on sales, purchasing, general affairs, and accounting of your company.

Bespoke type seminar

We are carrying out a bespoke type VAT seminar that meets the actual circumstances of your company. Once you have confirmed your internal affairs (country of subsidiary, presence or absence of VAT number, logistics conditions), check the taxation relationship, then use the revised seminar details for your company in the actual seminar. There are about 60 pages of text actually used, and it covers various cases.

We have partnered with more than 10 accounting firms in Europe alone, including one of the world's largest value-added tax consulting companies. For this reason, we can introduce not only trial cases and the latest value added tax rates, but also some of the latest examples. We will show you the latest information gathered from all over the world and the points that you actually need to deal with.

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