Premium package: SAP add-on for VAT

Taxmarc™ developed various packages to satisfy various client needs based on the VAT/GST complexity of their business model. The variety of packages facilitate optimum client flexibility.

It is possible to select certain features or only one feature (e.g. tax code solution, VIES validation, tax code renaming exercise) but with the advantage to still add at a later stage additional features or even upgrade to the Standard or Premium package.

Our Packages

1. Premium Package (Taxmarc™ Tax Engine)
2. Standard Package (Taxmarc™ Basic)
3. Start up Package (Taxmarc™ Add-on)

Premium Package

The Premium Package contains all the features of the Standard Package functionality – see pictorial overview below – and has extra features for full automated VAT determination, automated VAT control and optimum workforce efficiency (e.g. lower maintenance costs, tax code solution, automated VIES validation).

Our Premium Package enables – without interface or external software – a fully automated VAT determination of all sales and purchase transactions in SAP also for the most complex transactions (see below import and export indicator).

This package uses all VAT relevant data, including chain transactions between legal entities, in order to ensure the correct VAT determination.



A non-exhaustive list of additional features in the Premium Package

1. Automated VAT determination of Intercompany and 3rd Party drop shipment chain transactions with 4 parties in the chain
2. Time stamped tax code design where no longer new tax codes are needed when the VAT rates are changed by the Tax Authorities
3. Integrated Taxmarc™ decision tree in SAP as part of the Tax Control Framework with more automated real-time controls on transactions for VAT compliancy
4. Additional import and/or export functionality. In chain transactions with non EU countries the correct VAT treatment depends on which party is acting as importer or exporter of records. Additional data are used to either default the party acting as importer or exporter of records or define this at sales order level
5. Tool to check the validity of VAT registration numbers against the European VIES database at the moment of set up and periodically afterwards
6. Data Analytics on the relevant VAT data for all sales transactions which provides a ‘Continuous Controls Monitoring’ tool for all stakeholders, also beyond indirect tax (e.g. export control, transfer pricing), and realizes real time access to the company’s blue print without any need of manual transaction mapping.
7. Full Taxmarc™ VAT management Cockpit to monitor and maintain the VAT in a user friendly and cost efficient way as it places all VAT relevant transactions (configuration, maintenance, and reporting) in one place. The standard SAP authorization rules (security) are applicable.
8. VAT technical configurations and set-up options are grouped together in the standard SAP IMG. Instead of multiple places in different modules and IMG trees a structured and transparent IMG tree for Taxmarc™ is created

Example of import scenario

A Dutch Sales organization is selling goods to a French customer. The goods are not is stock and are purchased from a Singapore group company. Transport is by vessel from Singapore to Rotterdam and then by truck to the French customer.





To determine the VAT treatment of the supply chain it is essential to know who the importer of records is. Is that the NL sales organization or the FR customer and where will the import takes place (country).

From a VAT point of view the difference for the sales invoice is as follows

Importer of record = NL Sales organization in country NL

1. NL sales organization must invoice as an intra-community supply 0% from the Netherland to France to the French customer
2. Transaction must be reported in Intrastat (dispatches) by NL sales organization
3. Transaction must also be reported on the EC sales list

Importer of record: Customer in France

1. NL sales organization must invoice as an out of scope 0% on the invoice to the French customer as the transaction takes place before any import in Europe
2. There is no Intrastat obligation by NL sales organization

Process optimization, VAT determination and automated controls

During the order creation Taxmarc™ will check whether the order taker should enter the import indicator. In case the NL sales organization is selected as import of record the country of import has to be added.

Taxmarc™ subsequently will always check if the NL sales organization is VAT registered in the country of import. If the sales organization is not registered, Taxmarc™ will assign an error message to the incompletion log.



See Pictorial overview: ‘ Compare Premium, Standard and Start-up package '