Building the business case for indirect tax automation

Project justification and processes

WHY INDIRECT TAX NEEDS AUTOMATION

The indirect tax environment had seen a huge increase in digital obligations and real-time reporting, where data needs to becorrect from the beginning with little option to make changes later. This creates additional exposure to tax authority requirements, and therefore mitigation of the tax and compliance risk is critical.

Need to automate VAT determination :

Accounts Receivable
  • Documentation needed for process and compliance requirements.
  • Maintenance of master data - correct VAT registration numbers
  • Classification of goods and services
Accounts Payable
  • Currently little automation of the accounts payable environment
  • Improve data quality and reduce time spent processing invoices

Over time, increases in effectiveness and efficiency from automation will free up more resources for decision support, and will reduce manual reporting and transaction processing.

For a detailed overview of building the tax automation business case including :

  • Bringing the business case to the next stage
  • Business case implementation

Download the Guide : A Business Case for Indirect Tax Automation

Download the business case guide

Download the guide

Changing role of the Tax Function over time

Changes in Tax Function over time

Building the business case for VAT Automation Technology

The key drivers for building the VAT automation business case include mitigating the tax and compliance risk, reducing cash leakage and improving efficiency.

This will result in demonstrable benefits to the business including:

  • Increased level of control and tax position
  • Increased insights and tax related information reducing audit costs between 20-40%
  • Less human errors and reduction in administrative costs due to higher automation saving 25-50%
  • Decrease in tax reporting time up to 25-50%
  • Better calculate and manage transfer pricing and cash positions leading to better tax planning and forex management
  • Reductions of penalties, high provisions and defense costs
  • Reduction of 20-40% maintenance and human intervention in calculation of required taxes
  • 25-30% cost reduction to generate, monitor andaudit tax reporting compliance requirements