Premium package: SAP add-on for VAT

The Premium package contains all the features of the Standard Package functionality and has extra features for full automated VAT determination and automated VAT control for the sales transactions.

The Premium package enables – without interface or external software – a fully automated VAT determination of all sales and purchase transactions in SAP even for the most complex chain transactions with up to 4 parties in the chain (ABC(D) transactions).
This package uses all available VAT relevant data in SAP in order to ensure the correct VAT determination and is designed for complex dynamic business models.

Every VAT feature of this package further improves indirect tax performance of SAP in a specific area. Synergies are reached as additional functionality becomes available when all our features work together. An example is our integrated Taxmarc™ Purchase Engine, Taxmarc™ Tax Code Solution, Taxmarc™ VIES validation, Taxmarc™ Data Analytics and the integrated Tax Control Framework.

The premium package will maximize workforce efficiency, avoid rework, decrease risk exposures and increase visibility and awareness; enabling the tax function to set the right priorities.

Our Premium Package enables – without interface or external software – a fully automated VAT determination of all sales and purchase transactions in SAP even for the most complex transactions (see below import and export indicator).

This package uses all VAT relevant data, including chain transactions between legal entities, in order to ensure the correct VAT determination.

A non-exhaustive list of additional features in the Premium Package

  • Automated VAT determination of Intercompany and 3rd Party drop shipment chain transactions with 4 parties in the chain
  • Time stamped tax code design where no longer new tax codes are needed when the VAT rates are changed by the Tax Authorities
  • Integrated Taxmarc™ decision tree in SAP as part of the Tax Control Framework with more automated real-time controls on transactions for VAT compliancy
  • Additional import and/or export functionality. In chain transactions with non EU countries the correct VAT treatment depends on which party is acting as importer or exporter of records. Additional data are used to either default the party acting as importer or exporter of records or define this at sales order level
  • Tool to check the validity of VAT registration numbers against the European VIES database at the moment of set up and periodically afterwards
  • Data Analytics on the relevant VAT data for all sales transactions which provides a ‘Continuous Controls Monitoring’ tool for all stakeholders, also beyond indirect tax (e.g. export control, transfer pricing), and realizes real time access to the company’s blue print without any need of manual transaction mapping.
  • Full Taxmarc™ VAT management Cockpit to monitor and maintain the VAT in a user friendly and cost efficient way as it places all VAT relevant transactions (configuration, maintenance, and reporting) in one place. The standard SAP authorization rules (security) are applicable.
  • VAT technical configurations and set-up options are grouped together in the standard SAP IMG. Instead of multiple places in different modules and IMG trees a structured and transparent IMG tree for Taxmarc™ is created

The features Purchase Engine, Tax Code Solution and VIES validation are also available as stand-alone package as the functionality is designed to resolve SAP issues for a specific area.

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About Richard Cornelisse

I advise multinational businesses in improving the efficiency and effectiveness of their Indirect Tax Function and Tax Control Framework. I started my career as a manager at Arthur Andersen and then became a partner in EY where I led the indirect tax performance team for Netherlands and Belgium. Currently I am a senior managing director of Phenix Consulting. I have over 20 years’ experience advising clients on international VAT issues. I am specialized in the tax aspects of financial transformations, shared service centre migration, and post merger integration work. I am also somewhat of a mentor, giving back to the profession. If you are interested in conversation and discussion, please feel free to contact me.
This entry was posted in Automating complex VAT flows in SAP, Control Framework, enhancement implementation, SAP add on, SAP enhancement point, SAP for VAT, SAP implementation, user exit, VAT automation, VAT Control and tagged , , , . Bookmark the permalink.

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