Tax administrations use technology to improve tax audit effectiveness as combating VAT fraud is a high priority. Digitalization of tax is a trend, so more countries will follow soon. Every jurisdiction has its country-specific way and tax requirements. Countries have implemented e-invoicing with (almost) real-time electronic data submission or SAF-T based methods.
Harmonization is lacking, and companies should know of different national conditions that increase tax risks and administrative tax penalties. Understanding the obligations and implementing these obligations in SAP and processes does not only require the right tax skills and tax network but also an excellent work relationship between the tax function and IT department.
Without an external solution, a lot of workforces including often external SAP consultants are needed not only to implement but as well maintain being compliant moving forward when the legislator introduces new legal requirements.
We partner up with our clients, so via outsourcing to us, clients realize that these tax obligations including maintenance are met moving forward. All our SAP add-on products follow the same method and footprint to establish a standardized approach.
The next SAF-T wave
The following countries might be in the next wave: Germany, UK, Ireland and the Czech Republic. The Netherlands and Belgium are experimenting with another electronic format called “Transaction Network Analysis”, TNA is an overall European Commission initiative and 8 other countries have already joined.
Written by Richard Cornelisse
Richard advises multinational businesses in improving the efficiency and effectiveness of their Indirect Tax Function and Tax Control Framework.
He started his career as a manager at Arthur Andersen and then became an EY partner where he led the indirect tax performance team for Netherlands and Belgium. Currently, he is a managing director of SAP Tax Consultancy Firm.
Richard has over 20 years of experience advising clients on international VAT issues. He is specialized in the tax aspects of financial transformations, shared service center migration, and post-merger integration work.