TaxCorporate TaxUK tops VAT league

UK tops VAT league

Multi-nationals say UK system is most 'friendly' in KPMG survey

Multi-nationals say that the UK is the best place to be in VAT terms.

The UK came top of a ‘VAT-friendliness league’ compiled by
KPMG.

When asked which jurisdictions the respondents had found it most easy or most
difficult to do business in from a VAT perspective, the UK came out as the most
‘VAT-friendly’, with a net 10 percent of the sample saying it was easy.

Italy was cited as the most difficult with the respondents remaining
relatively neutral on other countries, according to the sample.

Senior finance professionals polled in the survey also expect governments to
rely more and more on indirect taxes.

Niall Campbell, KPMG’s global head of indirect tax and partner in the Irish
firm, said: ‘This survey, one of the largest and most comprehensive we have ever
commissioned on large multinationals’ views on indirect tax, helps to confirm
what we have been seeing on the ground in recent years, namely that indirect tax
is becoming increasingly important for global businesses as corporate tax rates
decline.

‘The levels of VAT which global businesses are now handling are quite
staggering and are clearly causing finance directors and tax directors real
concern. As the cost of getting VAT wrong is so material, it makes sense that
errors in VAT compliance have now been identified as the biggest tax risk for
these businesses – quite a shift in attitudes away from the traditional focus on
corporate and income taxes.’

Further Reading:

Read the KPMG
report

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