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Monday 15 June 2020
We have seen an unprecedented economic response by Governments around the world to the Pandemic. As an example, in the UK, the Institute for Fiscal Studies estimates the government will need to borrow an extra £200bn in this financial year alone
The sudden closure of businesses and the furloughing of workers has resulted in the drying up of tax revenues. The Bank of England estimates that GDP will plunge by 25% this quarter, with unemployment hitting 9%
With the recent VAT decrease in Germany, we are already starting to see that governments are using VAT changes as one of the levers to help pay for the unprecedented times we are living in. From an SAP perspective this creates a number of challenges for businesses specifically around the creation of new tax codes and ensuring that the system is able to deal with the new VAT rates. KPMG has estimated that a single VAT code change takes 81 hours to implement and getting these projects onto the IT development schedule is an increasing challenge.
So what can be done? To move quickly, and maintain control over tax determination within SAP systems, organisations will have to move to a more automated environment that is specifically built for managing VAT and putting the control and decisions around VAT in the hands of VAT professionals.
Join Chris Downing, Tax Technology Partner KPMG & Eoghan Rogers, SAP/VAT Manager Meridian Global Services as they discuss what you can do now to avoid being caught out by this problem and also future proof your organisation as the impact of CV19 starts to take effect.
VAT in SAP/ERP