Digital Strategy and Operations (DSO)

Compliance requirements

Increasing compliance requirements and subsequent risk of penalties

As the requirements for tax compliance continue to grow, so does the level of risk.

Here in the Middle East, we have seen many instances of severe non-compliance penalties. Many of these risks are avoidable, and are often due to oversights or inefficient processes. Applying the right amount of rigour can be a time consuming job when done manually, but technology can considerably ease that burden, as well as reduce the risk of human error.

Tax authorities

Tax authorities are investing in new technology

Technology is an escalating trend, particularly in the wake of the global pandemic, as organisations look to create leaner and more efficient processes.  

In order to deal with the increased activities and monitoring around tax compliance, many governments are investing in new technologies to help manage and track compliance. This has two main implications for businesses:

• The speed and accuracy with which compliance can be monitored is increasing, meaning less allowance for errors
• Increased need to upscale processes and systems may be required in order to comply properly. 

Taking a lead from many authorities around the world, we can expect to see a continued trend towards more digitised processes for tax compliance, from e-invoicing, to real-time reporting.

E-invoicing

The evolution of the tax authorities in the Middle East is accelerating. Over the last few years we have seen significant strides in the way that authorities implement and manage taxes across the region. E-Invoicing is a major step in this process and organisations will need to respond quickly in order to maintain compliance and avoid penalties. We have been working closely with both governments and organisations to help them navigate the changes and requirements that digitisation brings.

Benefits of e-Invoicing:

• Cost savings (paperless)
• Automation & integration
• Great efficiency and removal of human error
• Faster invoice delivery
• Enhanced security
• Quick, secure legal archiving