Automation
There are multiple reasons for adopting VAT Automation. There is an increased complexity of VAT, regulatory pressure on risk management and control, increased attention to VAT by Tax authorities globally, too many transactions to maintain in control, not sufficient in charge of VAT compliance, seek cost and process savings, etc. That is why most companies are automating their VAT processes and/or are working on their VAT ICT strategy. New technology and improved Enterprise Resource Planning (ERP) and other host systems make this more and more possible.
VAT Resource has gained an outstanding reputation from automating and streamlining the VAT processes of many companies. In this brochure we inform you about our VAT automation solutions and services.
Our unique approach
We either assign one or more professionals to your project team or we make available an entire project team to manage and execute the project for you. Our professionals will only focus on the project at hand and usually work at the premises of the customer.
Our VAT automation professionals
Our professionals are VAT specialists with an IT focus and IT specialists with a VAT focus. The combination of these skills makes it possible that we can easily combine in-depth knowledge of international VAT rules with a strong understanding of your system capabilities and challenges.
ERP implementation and review
The most common way to automate VAT is by optimizing the VAT capabilities of the ERP system (current, to be implemented or to be renewed). ERP systems have advanced VAT capabilities that are often not used (properly). The foremost reason for this is that implementing VAT rules requires a special skill set that is not always available within companies.
In addition, the data used to populate the tables within an ERP system become obsolete and must be updated when the VAT rates or rules change in each individual country covered by the system and/or when the business models change. As a result, the VAT set up of an ERP system needs to be maintained and updated on a regular basis.
VAT resource assist companies with ERP implementations, ERP upgrades and performs post implementation/upgrade VAT scans. We do this by analyzing a company’s VAT structure and system requirements, design and configure the best solution, assist in implementing and testing the design, train relevant users and provide post go live support.
Tax engine implementation and review
An alternative way to automate VAT is by implementing a bolt-on tax software applications also known as Tax engines. These Tax engines are increasingly enabling Tax and IT departments to centrally manage and maintain their VAT calculation and reporting obligations. They can replace and improve on the VAT functionality available in many host (ERP) systems. The software is highly flexible, has incorporated all VAT rules, can handle all (special) transactions and Tax structures and can be connected to multiple host system (via a so-called interfaces).
How does this work? For every purchase and/or sales transaction, transactional data is interfaced to the Tax engine (e.g. data such as the ship from country, ship to country, Bill to VAT number etc.). The engine uses this transactional data to calculate the applicable VAT amount and treatment and returns this VAT result back to the host system(s). The transactional data and VAT result is subsequently stored in a central database and can be used for VAT reporting and analyze purposes. The VAT rules/law included in the Tax engine is automatically updated and maintained by the Tax engine vendor.
VAT Resource has extensive experience with the implementation of the Tax engines of various vendors. We can perform all phases of this type of implementation, as described under ERP implementation and review above, only now within the selected Tax engine, interface and host system(s).
VAT Automation solution and selection advice
It is not possible to say that one VAT automation solutions is necessarily better than another for every company. For some companies the native ERP tax processing functionality is more than sufficient and for others a Tax engine or other dedicated VAT software application works out much better. The same applies for different Tax engines and/or dedicated VAT software applications. The architecture, range of functionalities, data content, connectability and levels of maintenance and support surrounding these solutions vary in several significant ways (depending on the vendor). Before selecting a solution, a company in our view should carefully assess its VAT needs and system requirements.
VAT Resource assist companies in making this assessment by performing a VAT quick scan of the systems, flows and structure. Based on this scan we report on the findings, areas for improvement and recommend suitable automation solutions (products) per finding/area for improvement.
In addition, we can help in the decision making and/or solution selection process. For this purposes we developed tools such as score cards to select the most suitable product and/or vendor, matrix to calculate the return on investment for the respective alternative solutions, etc.
Project management
A successful implementation largely depends on how well the project is managed. This includes getting the right skilled people involved, ensuring that the necessary steps are followed within the given timeframe and in the right order and thus avoid a time- and cost consuming implementation.
VAT Resource assist companies in this respect by either performing the project management or advising on the project plan and execution thereof.
