Richard Cornelisse

Posts Tagged ‘declaration’

Taxmarc™: Intrastat Module in SAP

In Audit Defense, EU development, Indirect Tax Automation, Indirect Tax Strategic Plan, Processes and Controls on 31/03/2014 at 9:41 am

Taxmarc™ Tax Engine fully automates not only the VAT handling of incoming and outgoing invoices but checks real time each individual with its integrated Tax Control Framework and any errors are blocked or allocated to an emergency table.

Launch of Taxmarc™ Intrastat Module for SAP

Taxmarc-product overviewToday, we launch our Taxmarc™ Intrastat Module: a fully automated SAP solution with integrated controls that uses standard SAP without external interface. The biggest issue with SAP Intrastat reporting is related to the completeness and correctness of the relevant Intrastat transactions. 

In standard SAP Intrastat there are transaction selected that should not have been selected (correctness) and there are transaction not selected that should have been selected (completeness). Manual corrections are time consuming and sometimes not possible.

See also below an extraction of a SAP note:

Cause and prerequisites: certain constellations of trangular deals cannot be modelled in the standard system.

Intrastat reports are increasingly becoming a useful tool for the tax authorities to evaluate the risk of VAT frauds, a topic high on the priority list of European Commission and local governments.

Many countries, notably Germany and Belgium, look to reconcile companies’ VAT returns to their Intrastat filings to identify inconsistencies in their VAT compliance.

Mismatches between VAT returns and Intrastat reports have the current focus of tax authorities and could trigger an audit. In practice reconciliation efforts afterwards are time consuming and in practice often not possible due to lack of audit trail.

To design an optimum process it is mandatory to link SAP’s VAT return with Intrastat requirements and transport the results to SAP Intrastat templates. Taxmarc™ module has established this alignment. That is the strength of Taxmarc™ and what is lacking in standard SAP.

It is not only about ‘being compliant’ to EU rules and regulations, but workforce efficiency and reduction of future costs as well. For example hard savings could be realized as this module avoids manual intervention, but also future audit costs could be reduced substantially.

This Intrastat module has been implemented and tested by a listed Multinational and a client reference is thus available. So whilst fines for non-compliance of Intrastat are very low, companies should therefore ensure they are fully up-to-date on their reporting.

Intrastat background

Each Member State of the European Union compiles its own external trade figures, in other words statistics on its cross-border movements of goods. A distinction is made between trade of goods between EU Member States (Intrastat), on the one hand, and trade with countries that do not belong to the European Union, on the other, (Extrastat).

The transactions between EU Member States are called “intra-Community purchases and deliveries” as regards to the value added tax code, and are labelled “arrivals” and “dispatches” for statistical purposes. The names “imports” and “exports” remain used for movements with third party countries, as well as for describing external trade in general.

The entry into force, on 1 January 1993, of the Single European Market opened up internal borders and abolished customs formalities. However, statistical obligations remain in place.

Intrastat is the monthly filing regime for companies sending (dispatches) and receiving (arrivals) goods across EU member countries’ national borders. It enables countries to monitor intra-community supplies and general trade.

All those subject to VAT have to complete a declaration themselves, regarding their intra-Community trade, unless this does not exceed a threshold calculated on an annual basis. This is the Intrastat declaration. This declaration includes all data regarding goods arriving from other Member States and goods being sent to other Member States.

It is important to note that if a business fails to submit the Intrastat reports within the legal time period, administrative or legal sanctions may be imposed.

459296 sap note triangular deals and intrastat

Via Intrastat Module in SAP

By Richard Cornelisse

Director Strategy Taxmarc™

E-mail: richard.cornelisse@taxmarc.com

 

 

VAT – European Commission

In EU development, Processes and Controls, Tax News, Training on 26/07/2012 at 9:00 am

VAT: Overview of EU legislation currently in force and eLearning course

The essential piece of EU VAT legislation since 1 January 2007 has been Directive 2006/112/EC. That ‘VAT Directive’ is effectively a recast of the Sixth VAT Directive of 1977 as amended over the years.

The recast brings together various provisions in a single piece of legislation.

Directive 2006/112/EC in turn was amended several times in the last few years and a consolidated version without legally binding value was published in January 2010 in the EU Official Journal.

An eLearning course has been developed by the European Commission to help tax officials and others get a good basic knowledge of the VAT Directive.

The course is freely available for download from our web page.

Table Of Content

Key documents

Traders

Control and Anti-Fraud

New administrative co-operation regulation

Combating tax fraud

Conferences and other events

e-learning

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