SAP Indirect Tax consultancy

For almost every company, the accuracy and efficiency of local-country VAT compliance is highly dependent on the implemented functionality in the ERP system. From a VAT perspective the implementation of the correct design/logic in SAP is by far the most important driver for being VAT compliant. We support the implementation of VAT in SAP implementation project from end (requirements gathering) to end (hypercare after Go-Live) perspective.

Below a non-limitative list of possible activities:

A high level overview of activities:

• Current state blueprinting and transaction mapping
• VAT business requirements gathering
• Functional design VAT solution:
• Design of VAT and other indirect tax reports
• Provision of tax regulation information
• Test plans & testing
• Implementation support
• Process re-design & documentation

VAT Requirements Gathering

• Review of basic business model from VAT perspective: buy/sell, principal structures, locations etc.
• VAT requirements gathering: for all countries in scope
• Applicable VAT rates and non-deductible VAT rules
• Tax point date (for calculation applicable rate and reporting liable VAT)
• VAT registrations: multiple VAT numbers, fiscal representatives, VAT grouping
• Invoicing rules, required VAT statements, sequential numbering, e-invoicing,
• Currency requirements and exchange rates, local and invoice currencies
• VAT return requirements, boxes in VAT return, sales listings
• Master data for customers, vendors and materials: VAT registration numbers, VAT classifications, goods and/or services
• Rules for cross border transactions, incoterms, VAT number determination, invoice text messages, stock transfers

Functional design VAT solution

• Gathering other indirect tax related requirements such as intrastat return, statistical value, commodity codes
• Based on requirements design the SAP Tax codes and specific settings/configurations
• Based on requirements design rules for automated VAT determination logic and tax code structure (VAT condition tables)
• Design required invoice text message: language, reference to Law, via SAP Tax codes or additional logic required
• Design set up of “plants abroad” required, i.e. company is registered in multiple countries
• Design the processing of inter-company transactions: integrated in standard SAP or buy/sell
• Design Purchases: automated VAT determination or manual selection of Tax codes by AP staff?
• Design set up of VAT return process and VAT GL accounts

Testing

Test plan: develop test scenarios based on business model and VAT specific requirements

Testing:

• From sales order to invoice review to AR posting
• From purchase order to goods receipt to invoice receipt to AP posting
• From VAT reporting to reconciliation to GL accounts