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North America
VAT professionals are struggling with the burden of validating transactions and catching fraud, which they say should be the responsibility of governments, reports Euan Healy in International Tax Review. He says the transition to the digital age of VAT reporting and e-invoicing has altered the relationship between tax authorities and businesses. Governments are requesting more data points and information from companies, which are struggling to adapt to quickly changing expectations. Healy adds that tax professionals are increasingly finding that they now carry the burden of finding and validating potentially fraudulent transactions. The rapid rate of change has created an “overburdensome reporting requirement”, said Lisa Dowling, senior global director and head of indirect tax, advisory and compliance at TaxBack International in Ireland. Adam Schaffner, director of indirect tax at Thomson Reuters in Dallas, echoed her concern: “We’re basically becoming employees of the government; we’re becoming free auditors.”
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