We have developed MacroExcels (audit trail of changes and password protection) to support the VAT reporting process for all countries in Europe. Those MacroExcels are currently used by a multinational to extract the data, prepare the VAT returns, and perform vital VAT controls.
We used these MacroExcels to develop the SAP add-on for European VAT reporting. The SAP add-on extracts all the relevant VAT return data from Standard SAP to calculate the boxes of the VAT return:
Functionality for effective and efficient management of VAT in SAP is possible via the SAP add-on cockpit:
- The SAP add-on cockpit, the VAT return process owner can add manual adjustments or relevant VAT data. The SAP add-on displays these changes made and therefore contains audit trail functionality. In the add-on and standard VAT controls to test whether the source data contains VAT errors.
- All information is available in SAP or can be archived on a local server. The company can provide quickly to tax authorities when those authorities request such data for tax audit purposes.
- Manual corrections in the add-on with an audit trail of the VAT result, i.e., easy to follow initial results +/- modifications to final VAT result. The digital underlying VAT accountancy data is archived in SAP and can be stored on a local server.
- Reconciliation of VAT result and GL balance on VAT accounts
- Reconciliation VAT results and other reports if applicable, e.g., VIES, Intrastat, etc.
- Linkage with clients existing calculation files if applicable or requested
- Any enhancement is feasible as the add-on can be tailored based on client demands.
- When the tax authorities support the VAT return process owner can submit the VAT reporting directly from SAP
Depending on client request, the above can be quickly be developed for countries outside of Europe as it is a reuse of existing know-how and an easy tailor exercise to the local VAT reporting rules.