In addition to VDAs, a company can benefit from other tax reduction strategies. Depending on fiscal sovereignty and the specific facts and circumstances of a taxpayer, states may propose amnesty programs or negotiated conclusion agreements. In addition, a company can reduce VAT liability by collecting tax-exempt certificates from customers or by demonstrating that customers have already paid a user tax on products sold. We can conduct an in-depth analysis of Nexus for your business, certain transactions or a particular transaction. In addition, we can help you manage your company`s VDAs, from the first phase of the investigation to the negotiation of agencies, through the final agreement and the settlement. We can also propose strategies and solutions to reduce future risks. A Voluntary Disclosure Agreement (VDA) is a legal way to report taxpayers, taxes due for income, sales, real estate and other forms of tax. In return for voluntary tax return, states generally grant a waiver of the sentence and a limited return period (usually 3 to 4 years), which significantly reduces the tax owed in relation to an examination. If recidivism fees are not disclosed but are determined by control, the taxpayer is at a disadvantage and is assessed at the end with various penalties, plus interest plus all historical taxes payable. A taxpayer with a potential tax burden in more than one state will realize that this service is faster, more efficient and less expensive than approaching each state individually. Participation in the MVDP is not billed to the taxpayer. State revenue/use tax and income/franchise tax (including Hawaii`s GET and Washington`s B-O tax) are the types of taxes that are generally subject to a voluntary disclosure agreement (VDA). Prior contact between a state and the taxpayer through a type of tax disqualifies the taxpayer from participating in voluntary advertising of this type of tax.
The „contact“ includes filing a tax return, paying taxes or receiving a government request for the type of tax. Multi-state voluntary advertising procedures, paragraph 5.2. When introducing a VDA with the state, the taxpayer is required to file tax returns, pay tax due on tax returns and register with the state (if necessary) in order to waive the penalty for the duration of the return period, as provided by the VDA. Interest on unpaid tax obligations incurred during the feedback period is not expressly waived by the government. The Comptroller`s office reserves the right to refuse the waiver of the penalty and/or interest or to cancel the contract in its entirety if the entity does not comply with the program`s guidelines and procedures. In addition, the reference periods contained in the VDA remain open for future reviews within the statute of limitations. The company must properly declare and pay the tax from the end date of the agreement. If the customer places an order with www.vda.de via „Publications – Orders – Downloads,“ this is an offer to the VDA for the conclusion of a sales contract. The VDA accepts this offer by sending the customer an email confirming the receipt of the order and indicating its information (confirmation of order).
If no order confirmation is possible (z.B. because the customer has not entered an email address in the order), the contract comes into effect with the shipment of the goods.