Automated Tax Determination For SAP
Fully compliant and automated tax processes for SAP systems
The challenge for SAP VAT determination
More and more multinational businesses have European operations with complex cross-border flows and multiple foreign VAT registrations. However, SAP is often unable to handle the complex VAT rules and associated reporting requirements faced by such businesses.
How businesses may solve the issues with SAP VAT determination
- A complex sequence of manual workarounds may be developed over time. Where businesses develop bespoke access sequences together with a complex set of condition records in order to try and derive a complex VAT decision.
- The order management team manually changes the VAT characteristics of sales orders. This could be done to attempt to overcome a known limitation within SAP VAT determination and to try and force the correct the VAT result. This means a company may allow non-tax staff to make decisions – which is very high risk.
- Staff need to manually recognise in SAP each EU triangulation transaction flow. As such ensuring staff correctly recognise when triangulation applies is a huge challenge.
- AP staff are responsible for selecting a VAT code on a purchase invoice – the business is effectively reliant on AP staff to be tax experts. It is often the case that the tax department has to spend further time reviewing and correcting the VAT coding on invoices applied by AP staff.
Consequences of manual determination of VAT in SAP
Many businesses are forced to carry out significant manual work outside of their system in order to compile their VAT declarations. Typically, doing such work in Excel or in some cases within a bespoke database or reporting engine, this yet another symptom of underlying issues caused by inaccurate VAT determination in SAP.
Although practical when done on a small scale, such a manual approach is often not scalable for tax and finance teams responsible for multiple jurisdictions and VAT registrations.
The Meridian solution : Automated Tax Determination For SAP
- Operates within your SAP system
- No external API connections are needed
- Can be managed by the tax deparment
- VAT rule changes automatically updated
- Global solution implemented worldwide
- Fully compliant and automated tax processes for all SAP ECC and S/4HANA systems
- The only European certified tax determination solution for SAP BTP
Meridian Tax Determination Solutions
Arco
The Arco application runs on the SAP Business Technology Platform and enhances functionality of standard SAP for global VAT determination.
Mehrwertsteuer-Add-on
Das VAT Add-on ist eine On-Premise-Lösung zur Steuerermittlung, die direkt in das native SAP integriert ist und alle Unzulänglichkeiten der SAP-Mehrwertsteuerermittlung beseitigt.
Vantage
Vantage is Meridian's Service package that ensures your system is always available and meeting business requirements. Comprehensive product information hub.
Contact our team if you have any questions on VAT determination in your SAP System
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