A SAP VAT configuration review can be used as a counter measurement as part of a sound tax audit defense. The outcome of such a configuration review should show where VAT errors in SAP occur.
The deliverable has to provide a clear understanding of how changes in the business model, master data, or legislation impacted the SAP VAT configuration at hand. When starting such an exercise, the objective is to understand first the operational business model and the current SAP VAT set-up.
Examples of SAP VAT errors:
- Ineffective design of VAT condition tables. That can result in “non-maintainable” condition tables and incorrect VAT results
- Inadequate use of available VAT-sensitive data in orders. That can result in the standard VAT calculation generating false results
- False derivation of VAT registration numbers for cross-border transactions caused by incorrect SAP configuration
- Not applying local reverse charge for foreign-registered companies in some EU countries
- Incorrect configuration of the tax codes and sub-optimal use of standard SAP functionality and reporting options
- Blocked iDocs (electronic interface documents) because of errors in the OBCD design
The tax function and tax digitalization: 'what to do'
SAP add-ons for tax reporting and tax audit defense
KGT SAP add-ons for SAF-T, e-invoicing and MTD UK for VAT work as a standalone application within the SAP system and does not change existing customer SAP functionality or processes. It is fully configurable with custom namespace /KGT.
KGT partnered up with SAP regarding 'SAP Advanced Compliance Reporting for SAP HANA'. The 'Advanced Compliance Reporting' (ACR) service enables you to configure, generate, analyze, and electronically submit statutory reports that contain indirect taxes, such as value-added tax.
KGT provides also S/4 HANA transformation support.
