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Taking Tax Compliance Worldwide

Grant Suneson — Wed, 19 Feb 2025 16:22:24 +0000

With the global financial landscape always in flux, companies are constantly on their heels. Political upheaval threatens the ability of companies to calculate their tax burdens in a timely and accurate manner.

The recent Tax Technology Innovation and Automation benchmark research report found that the desire to reduce tax risks and potential errors and increasing regulatory complexity and compliance requirements are far and away the two most significant pain points driving how organizations manage their approach to tax compliance.

Organizations, particularly those that operate worldwide, cannot afford to have multiple different solutions strung together for different jurisdictions. This can lead to compliance gaps, lack of visibility, and potential errors that open them up to audits and other penalties.

Global tax automation is essential for businesses and governments to ensure compliance, accuracy, and efficiency in an increasingly complex tax landscape. With multinational companies operating across multiple jurisdictions, managing varying tax laws, reporting requirements, and compliance deadlines manually is both time-consuming and error-prone. Automated tax solutions help streamline this process by providing real-time updates on regulatory changes, reducing risks associated with non-compliance, and minimizing human errors.

Managing Taxes Globally

To overcome some of the most challenging issues in tax compliance, many global enterprises are turning to Sovos. Its Compliance Cloud Platform helps support organizations that operate worldwide, ensuring the correct indirect taxes, VAT and Sales and Use Tax (SUT), are being applied or paid.

Sovos’ automated solutions also enhance efficiency by accelerating tax calculations, filing processes, and audit preparations. This allows users to allocate resources more effectively, focusing on strategic financial planning rather than manual tax administration. Additionally, automation improves transparency and reduces the risk of fraud by ensuring consistent application of tax rules. As governments increasingly adopt e-invoicing requirements, automated tax reporting helps ensure compliance.

SAP Perspective

Adopting automated tax solutions is especially important for SAP organizations making the move to SAP S/4HANA. Digital transformations need to take business process transformations into consideration, including tax compliance.

Companies should think of this process like moving into a new house. Imagine thinking about what furniture you need to buy after you moved in. No one wants to live in an empty house for months, sleeping on the floor. SAP organizations need to pad out the tax capabilities of their new deployment with an add-on like Sovos, ideally ahead of time as adding it afterwards is not as cost effective.

As digital taxation evolves, businesses that adopt global tax automation will remain agile, compliant, and competitive in the global market, avoiding costly penalties and improving operational efficiency.

What This Means for SAPinsiders

Make room for growth. Organizations with designs on expanding their operations must consider how the expansion will affect their tax practices. Companies should not have to scuttle plans because their tax teams cannot keep up. Instead, they should find scalable solutions that can accommodate worldwide requirements and ensure they remain compliant.

Don’t move into an empty house. Tax compliance should not be an afterthought, even when it comes to important projects like the move to SAP S/4HANA. Organizations can maximize ROI while reducing time to value if they prepare essential workflows like tax compliance before the move is completed, installing cloud-ready solutions that can make an impact as soon as the go-live date arrives.

Stay on the front foot. With so many tax regulations coming at companies from nearly every jurisdiction, they cannot afford to change their tax compliance practices manually, one at a time. SAPinsider found that automating and ensuring compliance in direct and indirect tax reporting is the top tax technology strategy among SAP organizations, at 47%. Relying on automation frees up tax professionals to do other important work while ensuring there are no compliance gaps worldwide. Companies need to rely on an experienced automation partner like Sovos to ensure compliance.

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Extending the value of SAP to streamline VAT determination and compliance

Vertex — Thu, 18 Apr 2024 10:21:51 +0000

SAP’s VAT function helps businesses address base-level VAT requirements. And for some companies with more simplified operations, these features within SAP ERP will often meet their needs. But as companies expand their sales channels and grow, VAT complexity increases. To address the intricacies of tax, SAP has empowered trusted partners like Vertex to integrate and build upon the foundational features within SAP ERP. Companies can then deploy an integrated tax solution that can provide expanded automation, reporting, and remittance capabilities.

In this guide, we introduce you to the current environment and help you make the business case for extending the value of your SAP ERP with integrated tax technology in the following areas:

Cross-border VAT complexity
Multi-party transactions
E-invoicing
Reverse charge rules
Real-time VAT reporting
Supply and install rules
VAT groups
Special schemes

Download the guide to learn more.

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Compliance’s complexity: Attitudes and barriers to getting it right in indirect tax

Vertex — Mon, 04 Mar 2024 14:49:16 +0000

Read the results from Vertex‘s research into how businesses mitigate compliance risk. After studying 580 people from around the world with influence over decisions made about indirect tax in their business, Vertex provides insights into indirect tax risk and whether organizations can avoid it or are forced to embrace it.

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Practical implications of EU e-commerce VAT rules

Vertex — Fri, 02 Feb 2024 13:56:44 +0000

As of July 1st 2021, the EU pushed for modernization of cross-border e-commerce VAT rules. The new legislation introduces substantial new VAT liabilities and compliance requirements. These concern both online merchants and marketplaces/multi-seller platforms facilitating sales to EU private consumers.

The legislation puts an end to governments missing out on indirect tax revenue from distance sellers. Now, it creates a VAT-level playing field for businesses. However, considerable complexities for marketplaces come attached to it.

To avoid being non-compliant, these marketplaces must ensure a series of additional measures. This guide aims to look at the new VAT rules for marketplaces and the practical implications they can have on a marketplace business.

Read the eGuide by Vertex to learn the key areas of change directly relevant to marketplaces, and to better prepare yourself to navigate and comply.

Download the guide

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VAT Compliance: The business case for tax engine

Vertex — Fri, 02 Feb 2024 13:41:16 +0000

VAT compliance is not for free; why would you want a tax engine for VAT?

The answer to this question is that it becomes increasingly important that an organization is in control of VAT. The legislative drivers behind this include increased reporting requirements imposed by various countries, increased data analysis capabilities and exchange of information, and a shift in Tax Control Framework discussions towards indirect tax.

Read the whitepaper by Vertex to learn how to tackle the challenges in VAT’s end-to-end process by examining the root causes and exploring the options.

Download the whitepaper

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Challenges of registering, filing, and settling tax globally

Vertex — Fri, 02 Feb 2024 13:31:57 +0000

Registering for, and managing VAT, GST, or sales tax in your own country is normally a relatively straightforward process. But what happens when you need to start working with an overseas jurisdiction to settle the tax on your digital sales or other taxable transactions in that jurisdiction?

From the moment you register in a tax jurisdiction, you enter their compliance regime. Yet the accessibility, quality, and quantity of guidance you receive both before and after you register differs widely. Therefore, you certainly can’t rely on simply finding the information you need online.

On registering, you might get a comprehensive manual running to hundreds of pages. But do you have the resources to read, digest, and act on the information for every country concerned? On the other hand, you might get very little information, and be expected to figure things out for yourself or consult with a local tax advisor.

This guide from Vertex will help you navigate the practical considerations for registering, filing, and settling indirect tax in tax jurisdictions globally.

Download the guide

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Global Tax Compliance Research: A Comparative Analysis

Vertex — Wed, 31 Jan 2024 14:40:05 +0000

In an increasingly interconnected world, understanding how businesses navigate the complex landscape of indirect tax compliance is paramount. In this comprehensive research, Vertex surveyed 580 professionals with influence on decision around indirect taxes, from Belgium, Netherlands, DACH, Nordics, Spain, France, UK, Ireland, and the U.S in the following areas:

Tax compliance strategies adopted by businesses.
Businesses attitudes towards risk
The role of skills and talent in tax compliance
Technology and data quality and their importance in tax compliance

Download the study and find out more on the regional discrepancies of tax compliance.

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