Standard Package: SAP add-on for VAT

The Standard package is primarily designed for companies that run medium complex business models. It offers a VAT compliant determination solution and 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.

It includes features to optimize workforce efficiency and realize lower maintenance costs. The Standard package automates all VAT determination for sales-order based transactions, including intercompany transactions and it ensures issuing VAT compliant invoices.

VAT Determination

The key objective is to define the correct VAT treatment for the specific sales transactions:

  • Automated VAT determination of: standard triangulation, VAT group scenarios, bonded/VAT warehouses, domestic reverse charge, special VAT regions (e.g. Canary Island), plants abroad scenarios, intra EU and export supplies and supplies of services
  • Automated VAT code determination for intercompany invoices
  • VAT determination based on available customer VAT registration numbers

VAT Compliance

In the VAT compliance functionality the invoice requirements and controls are covered:

  • Required VAT data to comply with invoice requirements
  • Automated sequential invoice numbers per tax jurisdiction
  • An integrated Tax Control Framework which ensures that transactions that fail to comply with VAT requirements are automatically blocked (immediate resolving the non-compliance) or processed via an emergency table (retrospective correction)

VAT Management

Functionality for effective and efficient management of VAT in SAP is possible with the following features:

  • Taxmarc™ Cockpit
  • Standard SAP IMG (Implementation Guide) functionality to implement and customize the Taxmarc™ solution and enabling easy and cost-efficient maintenance
  • Smart VAT condition design,using a maximum of approximately 250 conditions per tax jurisdiction (low maintenance costs)
  • Smart foreign VAT registration design: adding a new VAT registration number automatically activates the applicable VAT condition records and tax codes when a VAT country is already available in Taxmarc™

Schermafbeelding 2014-11-09 om 10.34.08

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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