Seven Reasons to Automate VAT Determination in SAP

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The tax function in today’s multinational business is subject to constant change whether it be legislative or company re-organisation, geographic expansion, mergers & acquisitions, new business units, new sourcing, or new complex product lines. These influences all impact VAT determination. The manual process of updating SAP systems to cope with changes requires IT and Finance resources.

Even when systems have been updated, the weakness of native SAP in multinational VATdetermination may still leave the company exposed to potential errors, creating issues for tax declaration and the auditing process. There are seven key reasons why businesses should look at automating their VATdetermination in SAP.

Seven reasons to automate SAP VAT determination

  • Responding to business and legislative changes. Automation removes the need for constant manual updates to stay abreast of VAT regulatory and company developments.
  • Improve VAT determination accuracy. VAT automation logic will automatically determine the correct VAT, even on the most complex multi-country triangular transactions.
  • Reduced need for IT involvement. With automation IT departments are no longer required to carry out heavy customising or hardcoding in the system in order to get the correct VAT determination.
  • Staff no longer need to manually change purchase orders or invoices. VAT automation means means staff do not have to manually adjust sales and purchase orders to get the correct SAP VAT result. 
  • Improved reporting processes. Automation improves the company’s reporting process by ensuring the VAT determination data is correct first time.
  • Improve tax department control, agility, and scalability. The Meridian VAT Add-on gives the tax department control because the system is operated and maintained by your VAT professionals instead of your IT staff.
  • Reduce the cost of global VAT management. VAT automation can significantly reduce overheads including training, administration, IT staff and auditing costs.

Download the Guide : Seven reasons to automate VAT determination in SAP

The case for automating international VAT determination in SAP is evident. The legislative environment is becoming increasingly complex and ongoing manual updates to SAP systems are becoming unmanageable. We discuss in detail the seven key reasons why you should automate your SAP VAT determination.

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