25th June working breakfast: ‘Improving the EU VAT system and cutting the costs for SMEs’

Hosted in the EU Parliament by The SME Union of the EPP

A well attended event moderated by Zsolt Becsey MEP, with speakers Chris Williams (RTvat), Stephen Bill (Head of Cabinet of Commissioner Kovacs), Professor Alain Steichen (University of Luxemburg), and Gerhard Huemer (UEAPME). RTvat presented the RTvat system as a single solution for reducing VAT fraud and VAT-based administrative costs, outlining how small yet powerful changes to the current VAT system can bring highly impactful benefits to SMEs.

Stephen Bill commented “This is a wonderful idea” and said that he saw technology as the ultimate solution to VAT fraud. His concern over the amount of time required to implement the changes required was responded to by Professor Steichen, whose presentation showed how much of the current system will remain the same and how only small changes need to be made to implement the RTvat solution, and by Stephen Coleclough of PWC, who offered the example of legislation in the field of overseas telecoms providers which was agreed and passed within six months.

Concerns expressed about whether banks would agree to be involved were answered by Chris Williams who said that the feedback from banks approached about the RTvat solution was positive and enthusiastic. This comment was supported by Mr. Becsey, who outlined the positive aspects for banks. Other comments about general fraud served to emphasise the specific VAT focus of the RTvat solution. Mr Huemer positively endorsed the focus of the RTvat solution in reducing fraud. Mr Becsey concluded the meeting with a strong endorsement of the transparency of the solution, indicating that the RTvat system will work for SMEs rather than against them and adding his personal support for the RTvat solution.

17th June one-day seminar: ‘Real-Time VAT’

Hosted at Business Europe Brussels by Business Europe VAT Group

A lively and in-depth one day analytical discussion of the RTvat solution by corporate tax experts. Topics ranged from current business VAT registration problems, insider dealing, real-time currency exchange and general fraud to exemptions (such as vouchers and gold bullion), import and export, the black economy, and intra-company cross-border trade. RTvat brought two technology experts from the USA to the meeting to discuss the issues of technical interfacing with corporate accounting procedures.

The attendees were keen to explore every avenue of the RTvat solution, providing insight and information on the corporate-specific concerns and range of VAT scenarios. RTvat was very pleased at the level of enthusiasm behind this analysis, and delighted to see the RTvat solution being developed with stakeholders to provide the best solution for all parties involved. Business representatives also expressed their opinions over the likely response to the solution from governments and tax authorities, which RTvat will be following up for confirmation.

The outcome of the meeting was the conclusion that the RTvat solution would have a positive impact on missing trader fraud, on identification issues and on input VAT fraud, all of which were clearly major concerns for the attendees.