SAP VAT course

The SAP VAT determination logic was developed during the 1980’s and, except for the “plants abroad” logic, SAP’s VAT determination logic has changed little. This is in stark contrast with the significant changes made to VAT rules and business models over the same period. With the aim of creating new sales markets and achieving cost savings, business activities are spread all over the world.

Cross-border chain transactions with third parties or within a company (inter-company transactions) have become the rule rather than the exception. The above means that often practical solutions have to be found within the set-up of SAP regarding indirect tax.

Phenix Consulting possesses practical experience and understands SAP's possibilities, but also its limitations and thus the capability to free up resources, reduce manual activities and manage risks.



Program

The following topics are covered in the course:

  • Developments in the technology market - this section will elaborate on developments and trends in the technology market that have an impact on the indirect tax function of organizations. Examples include changing business models, but also developments in the approach and processes followed by tax authorities.
  • Indirect tax functionality in SAP - learn about the opportunities that standard SAP offers to support the Indirect Tax process, but also addresses the limitations of standard SAP.
  • Practical work-arounds - discussing best practice work-arounds, but also risks and opportunities of these work-arounds on quality of the indirect tax process.
  • Tax software - overview of software solutions (tax engines) available in the market including their advantages and disadvantages.


The training is interactive. Sufficient time is allocated for answering specific questions and issues that you encounter in your organization.


What we offer

We offer the following models:

  1. SAP VAT basic training - 4 hours - the following key VAT concepts and functionalities of SAP and VAT will be discussed: 
    • Standard SAP design
    • Standard VAT drivers 
    • VAT on Sale 
    • VAT on Purchases 
    • VAT on FI-Only
  2. In-depth session - in addition after interviewing and understanding your own operating business models and the design and implementation of SAP your current issues will be discussed and recommendations provided how to come to improvements
  3. Workshop - the workshop will be completely focused on your 'As Is' and how to get to the 'To Be'. We will provide insight in normative controls, practical workarounds and VAT tools available in the market (e.g. Vertex, OneSource, Meridian and Taxmarc by PwC). The latter includes the questions that should be raised during vendor selection.

 


Audience

This training focuses on the tax function, (SAP) IT staff, finance staff, sales staff and Internal Audit.



 Our skill-set



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.

VAT should be considered in every aspect of the process, from concept through completion and beyond.

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.

The key to success in the management is the ability to translate tax knowledge into workable business processes.