Economic Substance Regulations | Spectrum

By Author: Spectrum Accounts
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Governments continue to employ decreased VAT services and exemptions to promote their tax and social goals, such as supporting particular economic sectors or influencing behaviour to enhance health or the environment on a global scale. In APAC, where most governments have a single taxable VAT/GST rate, VAT/GST is used less to influence consumer purchasing or drive particular industry results. However, some patterns continue to develop.

Future Ahead

In general, firms in APAC must dedicate more attention and resources to the management of VAT/GST and sales taxes than they may have done previously. This may start with local compliance duties, but it should also incorporate a company-wide plan. More robust procedures and controls, as well as cost savings, will follow from strategic action. There may even be possibilities, such as utilising VAT/GST exemptions and being better positioned to expedite VAT/GST refunds.