Indirect Taxation
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The importance of indirect taxes on State revenue, in comparison to other taxes, results in regular changes in the tax law requiring, on the one hand, taxpayers to modify procedures and, on the other hand, creating opportunities, too often neglected.
In the current situation, where the control of costs and the maximization of cash flows is becoming increasingly relevant, indirect taxes are even more important.
PwC Indirect Taxes team includes experts with recognized experience in Value Added Tax, Custom and Excise Duties, specialized in the particularities of the several industries, and with major experience in cross-borders operations.
Our support aims covering all of our clients’ needs, by providing an analysis and structuring the most complex cross-border transactions in highly specific areas, enhancing tax efficiency and respective cash flow, providing information, thoroughly analyzing procedures and systems, and furthermore assisting in the computation of amounts due, completing tax returns and tax statements or preparation of tax refunds.
Our global network, relying on constant exchange of know-how, gives us access to exhaustive and updated databases, such as the one that can be found at the following link: https://globalvatonline.pwc.com/.
How PwC can help you
We are available to advise our clients on a recurrent basis in any matter related to indirect taxes, either through telephone contacts or written opinions, and also to provide support in the implementation of specific projects. Such support includes tax efficient designing and structuring of national or cross-border operations, as well as supporting cross-border projects.
We take care of completing and submitting periodical tax returns and tax statements and other tax obligations, minimizing our clients’ time burden in this type of projects and assuring that these are efficiently carried out, with a positive impact on the enterprise’s cash flow management, given our specialists’ expertise.
VAT refund requests, either national or made under the 8th and 13th EU Directives, are lengthy and prove to be complex to enterprises. On the other hand, the increasing difficulty on claiming VAT on bad or doubtful debts has been depriving companies from maximizing their cash flows. Our team of experts assists companies with the optimization of VAT recovery, an “asset” commonly neglected due the unawareness or the complexity of the respective procedures.
Mixed VAT taxpayers are not allowed to deduct the total amount of VAT incurred in the acquisition of products and services, therefore they need to opt for the direct allocation method, for the pro rata method or for an adequate combination of both methods, in order to assess the total VAT deductible. Opting for the most adequate method in view of the specific business, determining the most appropriate criteria to be used and precisely computing the deductible percentages, all these aspects are often neglected, with a negative impact on the company’s cash flows and / or results. We aim optimizing our clients’ deductible amounts of tax, putting opportunities in place and preventing potential contingencies.
Determining the correct location of transactions for VAT purposes is not always easy for VAT taxpayers. Companies located in several countries often are not benefiting from their production stricture / supply chain, which optimized for VAT and Customs and Excise Duties purposes, can represent significant financial advantages. Therefore, we analyze our clients’ supply chains in order maximize the respective efficiency.
The possibility of issuing and receiving electronic invoice, although legally foreseen for already several years, seems yet only reserved to major groups; most companies seem however unaware of this rather secure, efficient and less expensive invoicing procedure, when compared to the traditional invoices. Compliance with legal requirements may be a challenge to many companies; therefore we at PricewaterhouseCoopers have implemented a specific structure aiming to support our clients in the implementation of electronic invoicing systems, as well as verifying the respective compliance.
A correct parameterization of ERP for tax purposes may represent a much more thorough control on the relevant tax information, in accordance we support our clients on the management of the varied tax options related with ERP.
SAFT-PT allows acceding a wide range of information, in particular in what concerns indirect taxes. We help our clients implementing and monitoring SAFT-PT. For more information about related services please visit
