Best Practice And Shared Service Centers

See Section: The Intersection Of VAT And Shared Service Centers ?

Companies that efficiently and effectively integrate VAT into their shared service model will have these leading practices in common:

1. They know that VAT is far more than a simple “wash” as a consumption tax but needs to be proactively managed throughout the buy and sell end-to-end processes.
2. They look at the upstream and downstream processes connected with any transaction that carries VAT and have a transparent end-to-end perspective into the controls and metrics for each.
3. They leverage the capabilities of their ERP systems to automate VAT processing wherever possible, and design their solutions so the decision is made at the right time by the right resource.
4. They know that an SSC is not the end result of a one-time initiative. Rather, it’s a vehicle for continuous improvement, with the built-in ability to flex with the changes in company, industry, marketplace, business and the global regulatory environment.
5. They know that VAT is not an add-on to the SSC model, it’s a critical requirement that if proactively managed brings an additional slate of benefits to the SSC.

Do you agree?