Migration to new jurisdictions - Ensuring Smooth ERP Updates During Migration

Page 5 of 5: Ensuring Smooth ERP Updates During Migration

Ensuring Smooth ERP Updates During Migration

The migration will necessitate updates and testing of the ERP systems to accommodate new contracts and billing processes. It is essential to clearly identify and communicate ownership of these tasks from the outset, ensuring that the ERP system can generate accurate invoices from day one.

Furthermore, personnel changes may occur during the migration, leading to the departure of individuals with crucial historical VAT knowledge, including practical workarounds. This loss of expertise can become apparent during a tax audit years later, making it difficult, if not impossible, to address inquiries raised by tax authorities.

To mitigate these risks, it is critical to implement comprehensive knowledge transfer and documentation practices throughout the migration process, as well as to ensure that roles and responsibilities are clearly defined and communicated.

Processes, Controls, Roles, and Responsibilities

• What VAT processes and controls will be established for the migrating entity?
• Who will be responsible for overseeing these controls?
• Will the tax expertise required by the migrating business be sourced through recruitment, outsourcing, or will it fall under the purview of the central tax function?
• What technology solutions will be acquired or repurposed during this migration?

Clearly defining these aspects is essential to ensure a smooth transition and effective management of VAT obligations in the new jurisdiction.

Managing Change Through Thoughtful Design

Managing change by design entails a thorough examination of every process and transaction—from inception to completion—while factoring in all requirements and controls. This approach is essential for designing and optimizing a compliant VAT process. VAT considerations should be integrated at every stage of the migration process, starting from the initial concept and continuing through to completion and beyond.

By embracing a design-oriented strategy, we can ensure that all requirements and controls are effectively incorporated, resulting in a VAT process that is both efficient and compliant. This proactive focus on VAT will help minimize risks and enhance compliance throughout the entire migration journey.