Despite the shift to indirect tax globally a new survey released by KPMG International shows that businesses are simply not keeping pace. In fact, according to KPMG International's 2012 Benchmarking Survey on VAT/GST, VAT/GST continues to be under-resourced, under-managed and under-measured by the majority of global businesses.
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This year's survey builds on the success of the first ever global VAT/GST benchmarking survey, published by KPMG in 2011, with new questions and comparative analyses for 225 respondents headquartered in 24 countries.
- Significant opportunities are being missed to manage risk more efficiently and effectively, improve cash flow and reduce bottom-line cost.
- There is greater evidence of quality VAT/GST management in Europe, the Middle East and Africa (EMEA). In Asia Pacific (ASPAC) and Latin America (LATAM), however, businesses should be concerned about how compliance risks are being managed.
- On average, larger businesses demonstrate higher levels of performance benchmarking and resource allocation to VAT/GST. Businesses in the financial services sector are much more likely to judge the effectiveness of their tax department with VAT/GST in mind and set key performance indicators (KPIs) to do just that.
- Compared to the 2011 survey results, there is tangible evidence that some businesses have started to take steps in the right direction to deliver effective VAT/GST management on a global scale, although there is still a long way to go to keep pace with the obligations, risks and opportunities which the shift to indirect tax globally is creating.