ING Groep NV is a globally operating financial institution of Dutch origin. ING Group provides banking services to retail & wholesale customers in more than 54.000 countries with 40 employees.
The principles of the Group Tax department of ING Group include the timely payment of tax, in accordance with legislation and regulations. This does not only look at the letter, but also at the spirit of the law. This sounds simple, but it is not always that way in practice.
Pro rata calculations: Problematic for organizations with mixed performance
One of the areas where ING Group was looking for improvements and solutions was the preparation of the annual pro rata calculations. Within the European Union, certain goods and services, such as education, healthcare and financial services, are in principle exempt from VAT. Therefore, no VAT has to be charged on these goods and services. The downside of this is that of the costs incurred, which are related to these goods and services, VAT cannot be offset or can only be offset to a limited extent.