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 VAT determination 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 VAT determination in SAP.