Real-time and fully automatic evaluation of tax compliance eliminates VAT risks
Amsterdam, February 15, 2013 – Taxmarc™ – an online VAT manager – provides companies with a complete overview of all data relevant to determining the VAT liability for business transactions.
This enables tailor-made VAT determination of transactions. Moreover, Taxmarc™ provides an online tax control framework that encompasses real-time evaluation of tax compliance and the consistency of the combination of the VAT data entered.
Hereby it offers an effective tool that facilitates efficient deployment of employees and optimal risk management regarding indirect tax.
For virtually every company the efficiency of compliance with local VAT regulations depends entirely on the functionality of the underlying ERP system, such as SAP. Determining the VAT liability and recovery in these systems is only partly automated and is mostly done manually.
By drawing upon 30 parameters instead of the 4-8 parameters in standard SAP, Taxmarc™ enables – without extra interface – a fully automated VAT determination of all (chain) transactions in SAP.
The tool incorporates VAT relevant data of all legal entities in order to ensure the correct VAT determination of transactions. SAP exclusively focuses on transactions within a single company; it only assesses the underlying individual transactions and fails to link the current transactions to the VAT results of previous transactions.
As a consequence, companies with VAT registrations in different countries cannot automatically comply with all VAT obligations. In addition, many multinationals operate with different versions of ERP systems, each business unit often has a separate system and there are multiple core systems per country.
This creates genuine risks such as VAT assessments, insufficient VAT refunds, and possibly fraudulent transactions. Also, synchronizing the periodic VAT reports based on these different sources takes a lot of time and resources.
Extra ‘brain capacity’
“The business models of internationally operating enterprises have radically changed over the last couple of years. As business practices go beyond national boundaries and sufficient harmonization of regulations in different countries is lacking, maintaining the VAT position is extremely complicated.
Without the right VAT regulations, regular ERP systems fail to process data correctly, risking incorrect calculation of VAT, failure to comply with local VAT obligations, and transactions that cannot be commercially executed”,
Richard Cornelisse, Director Strategy & Sales of Taxmarc™ emphasizes.
“The standard functionality of SAP is insufficient for building a viable and adequate virtual VAT manager.
In actual practice, these flaws in SAP are often patched up in order to keep the system running. Taxmarc™ basically creates a bypass in SAP, thereby building on the standard functionality and infrastructure of SAP, but we are adding extra ‘brain capacity’.
Real-time fiscal monitoring
Taxmarc™ provides a VAT/GST Tax Control Framework integrated in SAP. This framework ensures that transactions that do not comply with tax laws are automatically blocked.
Beside the highly improved preventive controls regarding risk management, Taxmarc™ underpins more efficient business processes and increased productivity. It enables a substantial reduction of the working hours and resources that are spent on the regular manual tax return process, as well as centralization of local compliance functions (Shared Services Centers).
Taxmarc™ has been implemented by multiple renowned multinational companies, including AkzoNobel Chemicals, Sigma Aldrich, ASM International NV, Fujifilm and ExxonMobil.
Our business model is extremely complex, especially with regard to VAT. We’re operating worldwide with many (chain) transactions that go across the borders and therefore we often have multiple VAT registrations per legal entity.
Using the standard settings in SAP, automatic VAT determination of individual transactions was not possible.
Taxmarc™ has enabled automatic VAT determination of all transactions for our company. Taxmarc™ identifies real-time when certain transactions are not possible, for instance because a local VAT registration is missing.
Improbable and atypical results are immediately visible and can instantly be corrected, so corrections afterwards can be prevented.
Client references are important and can be provided. It is your way to validate that we indeed keep our promise.
Taxmarc™ is investigated by a Big4 organization and is qualified as the best VAT quality solution for the complex business models of customers.
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For more information
Richard Cornelisse, Director Strategy & Sales of Taxmarc™, phone: +31 6 53 99 48 74; e-mail: firstname.lastname@example.org
Robbert Hoogeveen, Director Technology of Taxmarc™, phone: +31 6 57 94 70 93; e-mail: email@example.com