Keeping up to date on VAT legislative changes can be a challenge for international operations. Each new legislative change in the indirect tax system in every country where the company does business brings new risk that the company’s VAT determination has become outdated.

This exposes the business to risk in the sales channel with customer invoicing.Accounts payable can have issues with vendors due to delays in invoice processing and late payments. All of these factors further expose the company to challenges for tax assessment at audit.

Using native system functionality to manage VAT nearly guarantees a need for a constant process of re-design, re-configuration, testing and stabilising every system to stay abreast of regulatory and company developments.

The scope and nature of changes that we are seeing highlights the importance of having a flexible and adaptable solution in place for SAP VAT determination. The Meridian solution removes the time and effort internally to customise and build in-house solutions by Tax and IT experts.Particularly, over time such approaches can become very complex and difficult to maintain.