Tax Engine Vendors

A non-exhaustive overview of tax engine providers that provide global VAT/GST solution:

• OneSource
• Vertex
• Taxmarc™
• Taxware

Please add other providers via replying to this e-mail.

Taxmarc™ provides companies with a complete overview of all data relevant to determining the VAT liability for business transactions. Moreover, the solution provides an integrated tax control framework that encompasses real-time evaluation of tax compliance and of the consistency of the combination of the VAT data entered. Hereby it offers an effective tool that facilitates efficient deployment of employees and optimal risk management regarding indirect tax.

This mission is summarized concisely: ‘Promise only what you can deliver and deliver everything you promise’. Taxmarc™ solutions have been successfully implemented by multiple renowned multinational companies.

Taxmarc™ Tax Engine

Taxmarc™ enables – without extra interface – a fully automated VAT determination of all sales and purchase transactions in SAP. Taxmarc™ incorporates VAT relevant data of all transactions, including chain transactions between legal entities in order to ensure the correct VAT determination. Taxmarc™ can be implemented in all recent versions of SAP (R/3 or ECC).

The advantages:

1. Fully automated VAT determination of outgoing invoices (AR) on the basis of 30 parameters instead of the 4-8 parameters in standard SAP;
2. Automated VAT determination of incoming invoices (AP) based on purchase orders and actual vendor invoices;
3. Fully automated VAT determination of chain transactions in SAP with the assurance that the VAT code on sales transactions always correspond to the VAT code on purchase transaction;
4. Integrated Tax Control Framework which ensures that transactions that fail to comply with fiscal requirements are automatically blocked. Blocked transactions can be released but are always logged for review;
5. Time-stamped tax code structure: no new tax codes are required when VAT/GST rates are changed;
6. Taxmarc™ prevents that time-consuming manual processes outside of the system are necessary;
7. Taxmarc is fully table-driven and there is no “hard-coding” of tax rules, which results in easy maintenance;
8. Integrated VAT number validation in SAP.

Because the decision tree in the Taxmarc™ is integrated in SAP as part of the Tax Control Framework, SAP is equipped with automated management and control measures:

1. Real time evaluation of the consistency of the combination of the VAT data Taxmarc™ identifies real-time when certain transactions are not possible, for instance because a local VAT registration is missing.
2. In the event of inconsistencies transactions are automatically blocked. Then the correct combination – incoterms, tax compliancy, customer/company VAT registration, export control – has to be entered via the Edit function in order for the transaction to proceed. If a transaction is classified as fiscally impossible, the internal tax function must take action, whereupon configuration occurs, such as the entry of a new VAT number.
3. In the event of legal amendments, adjustment of the Control Framework of Taxmarc™ also needs to be processed. In the meantime, it is possible to allow transactions to proceed during these actions, if that is necessary from the company’s perspective.
4. Taxmarc™ keeps a logbook – Risk Register – of all identified inconsistencies. The internal tax function always has insight into the areas for attention through this logbook. This also allows companies to set the right priorities when measures are taken. In addition, it enables organizations to recover and to limit the amount of fines as much as possible.
5. The results are processes in VAT reports without manual interventions and by pressing one button, it is possible to compose, submit and check central VAT reports.
6. The use of Excel sheets to submit tax return is in the past, as are the risks caused by manual interventions and VAT processes.

Return on Investment - after implementation Taxmarc™Tax Engine

1. Less resources needed for indirect tax compliance process due to automation (excellent ROI)
2. Less commercial risks re vendors and customers because of incorrect invoicing with cause effect a hidden factory: substantial time spent on corrections and monitoring (excellent ROI)
3. Reduction on time needed re maintenance and training resulting in lower overall costs (excellent ROI)
4. Reduction of unforeseen tax risks during audits (outcome lower assessments) and time needed for inhouse and/or external advisor to manage indirect tax risks that exceed companies' risk appetite properly (excellent ROI)
5. Lower external advisory costs due to improved effective communication possibilities as stakeholders can be given access real time to relevant data by which wrong assumptions/rework/inefficiencies could be avoided (excellent ROI)
6. Real time blue print of business model available and accessable for continuous monitoring and planning re change management: new supply chain (model), centralization, outsourcing etc. (excellent ROI)
7. Optimized multidisciplinary (tax) planning via real time data: e.g. detailed visibility of intercompany transactions for transfer pricing, customs and VAT purposes (excellent ROI)
8. Efficient and effective Indirect Tax function: real time involvement on risk areas that matter by which future firefighting can be avoided (excellent ROI)

Taxmarc™ Digital Flyer

Compare features of Taxmarc™ Tax Engine, Taxmarc™ Basic and Taxmarc™ Add-on