Richard Cornelisse

SAP integrated solution for medium complex business models

In Audit Defense, Business Strategy, Indirect Tax Automation, Indirect Tax Strategic Plan, Processes and Controls, SAP add on, SAP add on for VAT, SAP for VAT, SAP SLO renaming tax codes, System Landscape Optimization, VAT automation on 22/12/2013 at 7:23 pm

Taxmarc™ SAP solution2

Taxmarc™ Basic is a standard package of Taxmarc™ that uses native SAP functionality and contains an integrated VAT Control Framework. Taxmarc™ Basic is specifically useful for companies that run medium complex business models.

Taxmarc™ Basic is a standard package of Taxmarc™ Tax Engine that uses native SAP functionality and contains an integrated Tax control Framework. Taxmarc™ Basic is specifically useful for companies that run medium complex business models.

Taxmarc™ Basic uses assumptions via pre-defined configuration, thus without a real-time reality check performed by Taxmarc™ of such. For those businesses that have a complex business model but do not need the full Taxmarc™ Tax Engine functionality, the Taxmarc™ Basic solution offers a VAT compliant determination solution.

Taxmarc™ Basic does not only address the shortcomings in standard SAP VAT determination, but also ensures control of VAT with the integrated VAT Control Framework in a transparent and easily maintainable way.

Taxmarc™ Basic is built on the proven Taxmarc™ platform and the de-scoped features from the full Taxmarc™ Tax Engine can be added at any point later on when additional budget becomes available or new requirements and controls are needed due to changes in VAT legislation and/or business models.

Introduction

The SAP VAT determination logic was developed a long time ago (1980’s) and except for the “plants abroad” logic SAP’s VAT determination logic has not changed much. This in contrast with the VAT rules and business models as these have changed significantly. A brief overview of some of these changes:

  • the EU VAT laws have been more harmonized (EU VAT directive)
  • substantial increase of cross border transactions,
  • businesses are registered for VAT in multiple countries,
  • businesses are operating more often under complicated principal structures
  • increased number of (integrated) intercompany and supply chain transactions

As a result, there has been a huge increase in the complexity for the SAP system to meet all VAT requirements, which leads to necessary modifications to the standard SAP VAT for many multinational businesses.

Modifications of already very complicated SAP systems create a risk for maintenance and half-hearted solutions. At the same time, tax authorities across the world both sharpen their focus on non-compliant taxpayers and increase their focus on reviewing ERP systems as a source of VAT compliance risks. As a result, businesses have to ensure that the VAT determination logic in the SAP systems is correct, easy to implement and remains VAT compliant.

Taxmarc™

Taxmarc™ Tax Engine integrates tax relevant data from multiple transactional data sources to determine the correct VAT in a consistent way. Taxmarc™ Basic uses assumptions via pre-defined configuration, thus without a real time reality check performed by Taxmarc™ of such.

For those businesses that have a complex business model but do not need the full Taxmarc™ Tax Engine functionality, the Taxmarc™ Basic solution offers a VAT compliant determination solution.

Taxmarc™ Basic does not only address the shortcomings in standard SAP VAT determination, but also ensures control of VAT with the integrated VAT control framework in a transparent and easily maintainable way. Compared to any other solution available in the market the features of Taxmarc™ Basic contribute considerable more in realizing indirect tax objectives.

An additional advantage is that when the proven platform of Taxmarc™ is implemented, the de-scoped features can be added at any point later on when additional budget becomes available or new requirements and controls are needed due to changes in VAT legislation and/or business models.

Taxmarc™ Basic front

Taxmarc™ Basic back

Download Taxmarc™ Basic flyer

Other Taxmarc™ Products

  1. Taxmarc™ Add-on
  2. Taxmarc™ Product Overview Flyer
  3. Taxmarc™ Tax Code Solution

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