Launch of Taxmarc™ Intrastat Module for SAP

Today, we launch our Taxmarc™ Intrastat Module: a fully automated SAP solution with integrated controls that uses standard SAP without external interface. The biggest issue with SAP Intrastat reporting is related to the completeness and correctness of the relevant Intrastat transactions.

In standard SAP Intrastat there are transaction selected that should not have been selected (correctness) and there are transaction not selected that should have been selected (completeness). Manual corrections are time consuming and sometimes not possible.

Intrastat reports are increasingly becoming a useful tool for the tax authorities to evaluate the risk of VAT frauds, a topic high on the priority list of European Commission and local governments.

Many countries, notably Germany and Belgium, look to reconcile companies’ VAT returns to their Intrastat filings to identify inconsistencies in their VAT compliance.

Mismatches between VAT returns and Intrastat reports have the current focus of tax authorities and could trigger an audit. In practice reconciliation efforts afterwards are time consuming and in practice often not possible due to lack of audit trail.

To design an optimum process it is mandatory to link SAP’s VAT return with Intrastat requirements and transport the results to SAP Intrastat templates. Taxmarc™ module has established this alignment. That is the strength of Taxmarc™ and what is lacking in standard SAP.

It is not only about ‘being compliant’ to EU rules and regulations, but workforce efficiency and reduction of future costs as well. For example hard savings could be realized as this module avoids manual intervention, but also future audit costs could be reduced substantially.

This Intrastat module has been implemented and tested by a listed Multinational and a client reference is thus available. So whilst fines for non-compliance of Intrastat are very low, companies should therefore ensure they are fully up-to-date on their reporting.

Launch of Taxmarc™ Intrastat Module for SAP

About Taxmarc™

Where We Differentiate

The standard VAT functionality of SAP is far from optimal. SAP exclusively focuses on transactions within a single company; it only assesses the underlying individual transactions and fails to link the current transactions to the VAT results of previous transactions. As a consequence, companies with VAT registrations in different countries cannot automatically comply with all VAT obligations.

Partly due to this reason SAP offers a certain degree of flexibility within the system, which enables users to apply adjustments in order to customize SAP for their organization. Previously this was known as ‘user exit’ and nowadays as enhancement implementation.

It offers users the possibility to add functionality and that is exactly what is accomplished with the implementation of Taxmarc™.