Richard Cornelisse

Electronic Auditing via Standard Audit File for Tax Purposes

In Audit Defense, EU development, Indirect Tax Automation, Processes and Controls, Technology on 12/05/2014 at 3:00 pm

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“More and more tax administrations around the world are implementing electronic auditing of a business’s financial records and systems. Countries are adopting tools that can interrogate such records on the basis that they must support the standard audit file for tax (SAF-T) methodology.”

Portugal: fully automated monthly filing of Standard Audit File for Tax Purposes for companies on SAP

The SAF-T standard, originally created by the OECD, is intended to give tax authorities easy access to the relevant data in a readable format. This leads to much more efficient and effective tax inspections.

In 2008, Portugal introduced the Standard Audit File for Tax Purposes (SAF-T) and it became obligatory for entities with head office or a permanent establishment liable to Corporate Income Tax. Since 2013, these entities are obliged to submit billing data and logistic information on a monthly basis to the tax authorities in a specific format.

The SAF-T standard, originally created by the OECD, is intended to give tax authorities easy access to the relevant data in an easily readable format. This leads to much more efficient and effective tax inspections.

 

Flyer KEY Group SAF-T-signedDownload leaflet

Independent external solution beyond Portugal

Indeed, the country in the leaflet relates to Portugal as this is a current burning platform of many multinationals and the reason why we focus on that country marketing wise.

However, based on the OECD requirements we indeed developed an ERP system independent external solution that can combine data from different sources (i.e. SAP, Oracle and Sabrix).This solution is beneficial in case of multiple legacy systems are used and can be easy tailored to country specific requirements.

It runs automatically within ACL and manual intervention is no longer needed as it is a fully automated process without data manipulation. The output will be a correct SAFT-XML.

That means that the leaflet also applies beyond Portugal.

Read also: Mandatory Electronic Audit Files A Worldwide Trend

 

 

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