What we offer

Phenix combines technical knowledge with industry understanding and knowhow of technologically advanced tools and methodologies available in the market or developed by ourselves. We identify risk areas and sustainable planning opportunities for indirect taxes.

Reporting accuracy and efficiency can be achieved via our well designed VAT function into Enterprise Resource Planning (ERP) systems, tax engines and third party compliance software.

The effectiveness and efficiency of VAT compliance is measured by the amount of time and resources it takes to produce your VAT return. Automation of a company's VAT compliance process can reduce risks or optimize tax planning (e.g. working trade capital, refunds, bad debts, etc.). Designed or implemented badly, it can burden and result in rework ('hidden factory') within an organisation.

  • Solution design: ensuring that your specific tax requirements, business processes and system functionality are fully integrated
  • Assessment and implementation of VAT functionality in ERP systems and tax engines
  • VAT return process design
  • Indirect taxes audit, through statistical sampling and data analysis
  • System accuracy improvements and error elimination
  • VAT compliance quality control

 

For questions please contact us.

 


Information Technology

In the last decade, companies have increasingly automated their business processes. The most common method is by using an Enterprise Resource Planning (ERP) system. Such a set up can be hugely complex. This is definitely the case where it relates to European based indirect tax.

Most ERP systems, including SAP, Oracle, JD Edwards, and Peoplesoft, are equipped with some form or forms of VAT functionality. However, these typically still require significant configuration and may need to be customized to deal properly with indirect taxes.

These systems will also need to be updated and tested to reflect new contracts and billing flows. Ownership of these tasks must be determined and communicated up front, so that the ERP system can accurately issue invoices from day one.

Multinationals run often various versions of ERP systems or legacy systems without harmonization. The ERP set-up is often per business unit and thus multiple set ups per country are possible.

This could be the root cause that:

  • Running of system's exception reports to look for missed opportunities, under claimed VAT and potential fraudulent transactions is still a challenging exercise
  • A lot of manual (re)work is often needed to file the VAT reporting and reconcile the VAT numbers due to the use of multiple spreadsheets and various data sources (divisions, different systems) 


 Our skill-set

VAT SAP material


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Take aways 

We combine technical knowledge with industry understanding and knowhow of technologically advanced tools and methodologies available in the market or developed by ourselves.

  • Focus on tax processes that could be improved
    • Manual process: same data requests are made by different stakeholders
  • As Is assessment
  • Anticipate future changes and the data needed
    • What are tax trends?
    • What is happening locally and what should be considered across jurisdictions where you operate?
    • Anticipate new stakeholders and their data needs or requests (internal and external)
  • Define scope and actions for short, mid and long term
  • Write business case for change
  • Realize sponsorship for implementation
  • What tax data is requested and by whom?
  • What tax process can be improved and what can be automated?
    • CIT, VAT, tax data warehouse
  • What is the Return on Investment?
    • Hard saving: process improvement
    • Meeting (new) tax requirement
  • What systems are in use: SAP, Oracle, etc
    • By which entities?
  • How many end-use computing tools (e.g. excel spreadsheet) do we have?
  • How do we avoid an ad-hoc solution?
    • Understand the bigger picture
    • Real problem and not the symptom

Technology-related tax risk: understand and address the potential harms and benefits of (new) technology.

Ascertaining proper IT support for ensuring efficient, timely and reliable reporting.

VAT should be considered in every aspect of the process, from concept through completion and beyond. Managing by design — looking at any process or transaction from end to end and factoring in all the requirements and controls essential to designing and optimizing a compliant VAT process.

We speak the language of the business and IT and no translation is needed.