Hungarian SAP health check: data in SAP incorrect and incomplete!

From 1 July 2018, taxpayers are as stated earlier obliged to provide within 24 hours invoice data for domestic transactions with a minimum VAT amount of 100,000 HUF (322 EUR).

Although we offer a fully SAP-integrated solution in SAP itself to submit required data in an automated way, it is essential to review whether the data in SAP itself is correct and complete.

The Key Group has recently delivered its Hungarian SAP health check pilot for one of its major clients, and the outcome was that quite some changes in SAP had to be made to avoid either future questions by the tax authorities or announcement of a tax audit when data is submitted mid-2018.

Please keep in mind that the Hungarian tax authorities are aware that SAP setup itself is often not in order and that tools outside the ERP system are used to remediate and manipulate tax data outside of SAP with the purpose to improve tax reporting.

The full automated legal requirement is to force taxpayers to remediate the ERP VAT setup itself and realize that taxpayers do not use workarounds as Excel sheets or similar tools outside the ERP system as human intervention is not allowed.

When the definitive EU VAT system becomes in force - expected in 2021 - these data requests become even more critical. The local tax authorities will use the acquired tax data to check whether sufficient tax revenue is received from the other Member State(s).

Based on this pilot we have designed an efficient and effective assessment process that will include not only an overview of gaps but as well our view how to remediate these gaps in SAP itself.

 The Key Group offers an SAP health check specifically on the Hungarian legal requirements defined in XML format.

Download: brochure
Read more: eInvoicing requirements in Hungary per July 1, 2018

eInvoicing requirements in Hungary per July 1, 2018

From 1 July 2018, taxpayers are as stated earlier obliged to provide within 24 hours invoice data for domestic transactions with a minimum VAT amount of HUF 100,000 (322 EUR). The ERP system must be able to detect sales invoices meeting reporting requirements: the minimum VAT amount. To be able to comply with the requirements and provide the data on in time, a taxpayer needs to develop either tooling or purchase a solution.

Read more

Commission develops TNA software to identify fraudulent networks

To speed up the joint processing and analysis of data within Eurofisc, the Commission is currently developing TNA software for voluntary use by the Member States as of 2018.

In order to maximise TNA’s potential to identify fraudulent networks across the whole EU, Regulation (EU) No 904/2010 would make clearer provision for the joint processing and analysis of data within Eurofisc.

Involvement in such processing and analysis will remain voluntary. However, all Member States should grant Eurofisc officials access to their VIES data on intra-Union transactions through TNA.

In that way the software can identify all potential fraud networks, including those involving traders established in non-participating Member States.

Read more: Fair Taxation: Commission proposes new tools to combat VAT fraud

Towards a new and definitive VAT system for the EU

 

According to the Commission's proposals, VAT will now be charged on cross-border trade between businesses. Currently, this type of trade is exempt from VAT, providing an easy loophole for unscrupulous companies to collect VAT and then vanish without remitting the money to the government.It will be simpler for companies that sell cross-border to deal with their VAT obligations thanks to a 'One Stop Shop' (OSS).

Traders will be able to make declarations and payments using a single online portal in their own language and according to the same rules and administrative templates as in their home country. Member States will then pay the VAT to each other directly, as is already the case for all sales of e-services.The Commission also proposes a move to the principle of 'destination' whereby the final amount of VAT is always paid to the Member State of the final consumer and charged at the rate of that Member State.

 Source: Towards a new and definitive VAT system for the EU

Tax authorities demand more, faster and more frequent data

The fierce debate on a fair distribution of tax revenues by governments has reached new heights. Tax shift due to risk allocation of transactions to low tax rate countries and even globalization itself are under political discussion.

Protectionism is an important part of the strategic objectives of certain governments. Additionally, the discussion concerning BEPS and state aid have caused fiscal uncertainties that force companies to reevaluate risks. In some cases this can even lead to changes in the business model.

Current business models are put under a magnifying glass, but also the change of business models – for instance from commissionaire to limited risk distributor – will get attention from the tax authorities.

 A reorganization in the Dutch Tax and Customs Administration has established the objective that routinely and labor-intensive, yet relatively simple control activities are to be taken over by automated processes.

That is, modern technologies appear to substitute to role of the ‘traditional’ tax auditor. The idea is that new computer systems and data analysis software will allow data files from different source systems to be connected, thereby enabling more efficient tax control and requiring fewer ‘traditionally educated’ employees.

The objective also holds that the tax authorities have earlier and faster access to relevant tax data and that this data is periodically provided by tax payers in a format that is prescribed by the government and that can easily be read and immediately reveal inconsistencies in fiscal activities.

Transfer pricing and/or VAT regulations are still not sufficiently taken into account in the development of VAT-automation regarding business processes.

This makes that the data that is captured in a vast amount of financial administration, can ‘impossibly’ be compared with that which is stated on the tax returns.

All chapters

1. Introduction: Relevant tax data from Transfer Pricing and VAT: explaining the ‘Why’, ‘What’ and ‘How’
2. The auditor is not (yet) a risk analyst
3. New tax legislation in the UK: 'Tone at the top'
4. More attention for Transfer Pricing
5. More attention for VAT
6. Tax authorities request more, faster and more often tax data
7. SAF-T rolled out in more countries
8. 'The impact on in-house tax function' and 'Preaudit before submit'
9. Realise a joint tax responsibility
10. Read: complete article with all chapters and links to follow up articles (in depth)

Above is a translation of article published in Vakblad Tax Assurance. Dutch version can be downloaded for free: Download click the link

Tax Risk Management - submitting tax relevant data to the tax authorities

Tax authorities are besides optimizing traditional tax reporting systems increasingly implementing in addition electronic (almost) 'real-time' transaction reporting systems. It is expected that tax authorities due to technological innovations become increasingly better and faster in executing their tax audit.

Complementary to the existing and more traditional tax reporting in countries like Austria, France, Lithuania, Luxembourg, Norway, Poland, Portugal, Spain already (close) to real time data request have to be submitted and/or should be available on short notice when a tax audit is announced. 

In countries like Austria, France, Lithuania, Luxembourg, Norway, Poland, Portugal, Spain already (close) to real time data request have to be submitted and/or should be available on short notice when a tax audit is announced. 

What is next?

Italy, the VAT invoices data informative reports must be filed with the tax authorities on a six-monthly basis starting by September 18, 2017. From 2018 the deadlines will be on a quarterly basis. For Hungary realtime invoicing is postponed to 1 July 2018. Companies need to have a solution implemented that is capable of real time data transfer by 1st of July 2018 at the latest.

It is however not clear how the tax authorities actually will analyse the data received. That might change soon as their strategy is an improved and faster tax audit including combatting VAT fraud as an overall EU priority.

Let me explain

Being ready for GCC VAT introduction when operating SAP

The Governments of the Gulf Cooperation Council (GCC) - Bahrain, Kuwait, Oman, Qatar (status unknown due to GCC politics/friction), Saudi Arabia and the United Arab Emirates that make up GCC - are committed to form a common framework for the introduction of value added tax (VAT) in the region. In order to achieve conformity within the GCC, it is anticipated that the six member states will all aim for implementation of VAT during the period commencing 1 January 2018 or by the end of 2018.

VAT as a process will affect many aspects of businesses operating in the GCC and will require significant time to plan, and integrate into existing processes.

Setting the objectives

• To be ready in time and a need of an effective and efficient work process between Tax function, IT function and its third party consultants
• To optimize its VAT deduction and to automate this VAT process as much as possible in SAP
• To limit VAT risks and meet VAT reporting obligations (e.g. reverse charge mechanism to avoid non VAT compliance)
• To automate VAT processes via enhancing the SAP 'as is' functionality where possible
• Set up processes and controls when VAT automation is not feasible
• To test new SAP functionality prior to go-live (sandbox)

Based on above objectives the PDF document 'More detailed description of Work in booklet' established the scope, schedule and means of initiating the work to be performed by the service provider and describes or references the specifications, instructions, standards, and other documents, which the service provider shall satisfy or adhere to in the performance of the work

The KEY Group is supporting one of the largest multinationals with the setup of the GCC VAT rules in SAP itself

Read more: Being ready for GCC VAT introduction when operating SAP

Contact us for more information

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Partnership between Key Group, SNI and ConVista

A partnership is closed between the Key Group, SNI and the international operating SAP consultancy firm 'ConVista Consulting' with offices amongst others in Madrid and Barcelona. Key Group and SNI operate from Netherlands, Poland and Turkey.

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Who we are

In order to establish synergies to support business SAP challenges of our clients we have setup a joint venture initiative in the past. Tax SAP experts - KEY Group and Phenix Consulting - developing together with SNI a global development partner of SAP and leading software company in the area of e-invoice, e-bookkeeping, e-archive, e-ticket.

SNI's core business is to provide SAP certified add-ons for legal compliance to a large number of global well-known companies. We have therefore access in-house to senior Tax SAP experts working together with SAP experts (functional and technical). That means our turnaround time is fast and our quality is very high.

A partnership is closed with the international operating SAP consultancy firm 'ConVista Consulting' with offices amongst others in Madrid and Barcelona. Our partnership relates to distribution, implementation and maintenance support (Spanish language) for our SAP SII add-on solution for Spain.

ConVista is an experienced consulting firm with a large track record in the design and installation of financials & treasury applications with SAP. We offer comprehensive IT consulting services complemented by custom software development. ConVista provides a complete service offering from a single source. Streamlined processes, a higher degree of automation and shorter project durations serve as indicators for improved efficiency. Expertise in process, technology and methodology form the fundamental components of our work. We combine long-lasting experience in the implementation and delivery of large programs with in-depth knowledge of treasury applications from SAP.

Quienes somos

Hemos desarrollado una iniciativa conjunta con el fin de establecer sinergias para ayudar a nuestros clientes en los desafíos de negocio de SAP. Los expertos en impuestos SAP - KEY Group y Phenix Consulting - forman junto con SNI un partner global de SAP y una compañía de software líder en el área de factura electrónica, e-book, e-archive, e-ticket. Además nuestro partnership con ConVista nos permite dar cobertura a nuestros clientes en numerosos países, facilitando la implantación y mantenimiento de nuestras soluciones.

La principal actividad de SNI consiste en proporcionar add-ons certificados por SAP para cubrir los requisitos legales en un gran número de empresas ampliamente conocidas. Por este motivo disponemos de expertos senior en el área de impuestos que trabajan conjuntamente con expertos de SAP (funcionales y técnicos), lo que nos permite un tiempo de respuesta rápido y una alta calidad.

• SAP add-on for immediate Supply of Information (SII) in Spain
• SAP Solution para el Suministro Inmediato de Información (SII) en España
• In Spain on 1 July 2017: immediate supply of Information to tax authorities in force
• España 1 de julio de 2017: Suministro Inmediato de Información a las autoridades (SII)

España 1 de julio de 2017: Suministro Inmediato de Información a las autoridades (SII)

A partir del 1 de julio de 2017, más de 62.000 empresas estarán obligadas a gestionar el IVA de forma electrónica. Se trata de un nuevo sistema electrónico para la declaración telemática de los libros de registro del IVA, que nace con el objetivo de agilizar el cumplimiento fiscal y las devoluciones de este impuesto.

La nueva plataforma de SII se centra en la obligación de la emisión y declaración electrónica del detalle de las facturas emitidas y recibidas por parte de una empresa.

De esta forma los libros registro de IVA se constituyen de forma automática, a través del envío recurrente sobre el detalle de las operaciones realizadas por una compañía. El plazo máximo de tiempo otorgado por la AEAT para el envío de la información es de 4 días hábiles ( 8 durante el segundo semestre de este mismo año)

Así pues, el modelo impulsado por la AEAT permitirá comunicar en tiempo real las operaciones comerciales realizadas por las compañías, incrementando la rapidez y eficiencia del control tributario y fiscal.

Más información: Suministro Inmediato de Información (SII) en España.

SAP Solution para el SII

IN ENGLISH

SAP Solution para el SII. Hemos desarrollado una solución integrada en SAP que da cobertura a los siguientes procesos:

• Selección automática de documentos/transacciones registradas en los módulos de SD y FI/AR/AP y conversión en eDocuments
• Clasificación de los eDocuments en torno a los requerimientos informativos del SII a través de “envelopes”
• Generación de los mensajes XML de comunicación con la AEAT
• Comunicación a través de Web Service del envío y recepción de los mensajes XML requeridos por la AEAT
• Gestión de los certificados homologados por la AEAT para garantizar el no repudio de la información intercambiada
• Integración de los mensajes resultantes de la validación realizada por la AEAT sobre la información enviada
  

El Cockpit SII ofrece las siguientes funcionalidades:

• Desglose ampliado de la información financiera en el Edocument
• Muestra datos de cabecera y del desglose de la factura en el Edocument
• Muestra el mensaje XML constituido en la pantalla
• Desglose de las transacciones de origen en SAP
• Muestra el seguimiento y estado del Edocument
• Almacena claves de aprobación (CSV) de la Agencia Tributaria
• Implementación de workflows de aprobación previos a la comunicación a la AEAT
• Opción de supresión lógica de documentos electrónicos (por ejemplo, para cancelar / traspasar facturas AP en SAP debido a errores de contabilización)
• Cargar desde Excel transacciones / informes de aplicativos externos no SAP
• Generación de los mensajes XML a la Agencia Tributaria para completar el proceso automatizado de envío electrónico

Características generales del add-on

Las soluciones integradas SAP e-invoice / SAF-T tienen las siguientes características:

• Totalmente integrado en SAP sin una interfaz o software externo
• Independiente de la versión y actualización de SAP, implementado sin modificación del core
• Área de nombres para todos los objetos registrada globalmente “/SNI/”
• Lenguaje de programación ABAP, idioma del producto en inglés
• Instalación realizada simplemente mediante un archivo de transporte externo
• Todos los desarrollos bajo un paquete
• Datos XML almacenados en tablas /SNI/
• Compatibilidad – Uso de XI/PI o integradores de facturas electrónicas
• Funciones SAP estándar disponibles (variantes, pantallas de selección, etc.)
• Autorización SAP estándar
• Pantallas fáciles de usar
• Tablas personalizadas propias
• Códigos y menús de transacciones propios

Sí, el add-on es escalable

El add-on es escalable. Algunas configuraciones son específicas de cada país y otras son compartidas. SAF-T está disponible para Francia, Polonia, Lituania, Noruega y ahora también para España (SII). Los nuevos requisitos en tiempo real para Hungría e Italia ya están en desarrollo. Nuestro objetivo es tener add-ons para todos los países que implementan la presentación de informes SAF-T.

Quienes Somos

Hemos desarrollado una iniciativa conjunta con el fin de establecer sinergias para ayudar a nuestros clientes en los desafíos de negocio de SAP. Los expertos en impuestos SAP - KEY Group y Phenix Consulting - forman junto con SNI un partner global de SAP y una compañía de software líder en el área de factura electrónica, e-book, e-archive, e-ticket. Además nuestro partnership con ConVista nos permite dar cobertura a nuestros clientes en numerosos países, facilitando la implantación y mantenimiento de nuestras soluciones.

La principal actividad de SNI consiste en proporcionar add-ons certificados por SAP para cubrir los requisitos legales en un gran número de empresas ampliamente conocidas. Por este motivo disponemos de expertos senior en el área de impuestos que trabajan conjuntamente con expertos de SAP (funcionales y técnicos), lo que nos permite un tiempo de respuesta rápido y una alta calidad.

Contact us for more information

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AEAT FAQ

SAP Solution para el Suministro Inmediato de Información (SII) en España

La Agencia Tributaria implanta un nuevo sistema de gestión del IVA basado en el Suministro Inmediato de Información (SII). El denominado “IVA online” es un procedimiento de gestión telemática u online con la Agencia Tributaria (AEAT), mediante el cual las empresas tendrán que comunicar los registros de facturación (no las facturas) de forma electrónica. Con esta información, la AEAT irá configurando, en tiempo real, los distintos Libros de Registro.

Solución con SAP add-on

IN ENGLISH

En España, el nuevo sistema de declaración del IVA entrará en vigor el 1 de julio de 2017. El nuevo marco regulatorio tendrá un impacto enorme en muchas (multi) nacionales que ejecutan SAP. Los sujetos pasivos afectados tendrán sólo un par de meses para adaptar su ERP a este nuevo escenario lo que constituye un verdadero reto. Si no se realiza en los plazos estipulados las compañías incurrirán en sanciones, incrementando el riesgo de padecer una auditoría fiscal.

La buena noticia es que contamos ya con una solución para el SII integrada en SAP. El nuevo marco regulador no es algo nuevo para nosotros, ya que hemos desarrollado en el pasado reciente soluciones similares para Polonia, Lituania y Noruega.

Hemos desarrollado una solución mediante la cual la presentación electrónica de los datos requeridos de facturas AR/AP está totalmente integrada en SAP, sin necesidad de una interfaz o software externo. Con esta solución, la presentación de las facturas solicitadas se puede realizar de forma automática y cumpliendo los plazos estipulados. Nuestra solución SII para España está lista y se puede ejecutar a través del propio entorno SAP.

¿Cuáles son los aspectos clave del SII?

• Suministro de los registros de facturación (no confundir con facturación electrónica) de forma INMEDIATA
• Primera piedra hacia la creación del Borrador de Autoliquidación de IVA
• De obligado cumplimiento para Grandes empresas, Grupos de IVA y REDEME
• Simplificación de las obligaciones informativas (Elimina 347, 340, 390* y Libros Registros IVA) y reducción de los errores en las declaraciones al poder “contrastar” la información con la base de datos de la AEAT
• Ampliación del plazo en 10 días para la presentación de Autoliquidaciones de IVA periódicas
• Tipos de Libros a comunicar (Facturas Emitidas, Recibidas) y de carácter anual (Bienes de Inversión y Importes en Metálico)

*La información del 390 que no se puede obtener a través del SII se suministraría como información adicional en los modelos 303 y 322 del último período de liquidación

• Plazos 4 días naturales ( 8 durante el 2017) excluyendo del cómputo fines de semana y festivos nacionales
• Facturas Expedidas desde la fecha de expedición de la factura
• Facturas Recibidas desde la fecha de registro contable de la factura
• Importaciones desde la fecha del documento de aduanas
• 1 Julio 2017 pero existe la obligación retroactiva de envío de los libros del primer semestre del año en el periodo de que va desde el mismo 1 de Julio al 31 de Diciembre (salvo las acogidas al REDEME)
• Comunicación de mensajes vía Web Service mediante protocolo HTTPS o Formulario Web
• Utilización de certificados homologados por la AEAT

Quienes somos

Hemos desarrollado una iniciativa conjunta con el fin de establecer sinergias para ayudar a nuestros clientes en los desafíos de negocio de SAP. Los expertos en impuestos SAP - KEY Group y Phenix Consulting - forman junto con SNI un partner global de SAP y una compañía de software líder en el área de factura electrónica, e-book, e-archive, e-ticket. Además nuestro partnership con ConVista nos permite dar cobertura a nuestros clientes en numerosos países, facilitando la implantación y mantenimiento de nuestras soluciones.

La principal actividad de SNI consiste en proporcionar add-ons certificados por SAP para cubrir los requisitos legales en un gran número de empresas ampliamente conocidas. Por este motivo disponemos de expertos senior en el área de impuestos que trabajan conjuntamente con expertos de SAP (funcionales y técnicos), lo que nos permite un tiempo de respuesta rápido y una alta calidad.

Contact us for more information

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AEAT FAQ

Tax relevant data for TP and VAT, the 'Why', 'What' and 'How'

Tax moral is shifting. More often what is (still) legally allowed may not automatically be accepted by the public opinion. Reputational damage is imminent.

Both on direct and indirect taxation the tax authorities have set their priorities. The tax authorities not only want to receive more tax data, but also faster and more often. In addition, there is a tendency to allocate the ultimate tax responsibility at the highest level in a company. Since last year in the United Kingdom the Board of Directors has to sign off the company's tax strategy and also publish the strategy externally.

Tax departments and the external auditors face due to these 2 tendencies new obligations. These tendencies could however also support change.

The new data requirements of the tax authorities have to be properly assessed and interpreted from a tax risk management perspective to see whether the data requested contain any uneforeseen and major tax risks. The outcome of such an exercise could also make clear that the company has to reorganize its business and tax processes.

When all tax disciplines (e.g. TP, indirect tax; etc.) work together a joint responsibility for the overall tax affairs of a company could be established. That might facilitate the buy-in for tax investments.

When successful tax can take the place it deserves: an important part of a company's business strategy.

All chapters

1. Introduction: Relevant tax data from Transfer Pricing and VAT: explaining the ‘Why’, ‘What’ and ‘How’
2. The auditor is not (yet) a risk analyst
3. New tax legislation in the UK: 'Tone at the top'
4. More attention for Transfer Pricing
5. More attention for VAT
6. Tax authorities request more, faster and more often tax data
7. SAF-T rolled out in more countries
8. 'The impact on in-house tax function' and 'Preaudit before submit'
9. Realise a joint tax responsibility
10. Read: complete article with all chapters and links to follow up articles (in depth)

Above is a translation of article published in Vakblad Tax Assurance. Dutch version can be downloaded for free: Download click the link

Relevante belastingdata vanuit TP en BTW: de 'Waarom', 'Wat' en 'Hoe'

Door Richard H. Cornelisse en Edwin van Loon Gepubliceerd in Vakblad Tax Assurance

Samenvatting

De belastingmoraal verschuift. Steeds meer wordt iets wat wettelijk gezien mag, niet automatisch ook geaccepteerd door de publieke opinie. Reputatieschade dreigt. Belastingdiensten worden ook scherper, op zowel directe en indirecte belastingen. Ze willen vaker, sneller en meer gegevens zien. Daarnaast is er een tendens om de eindverantwoordelijkheid voor fiscale zaken hoger in de onderneming te leggen; in het Verenigd Koninkrijk ligt die sinds vorig jaar zelfs al bij de Raad van Bestuur.

Die twee tendensen stellen eisen aan de interne fiscale afdelingen en de externe accountants, maar bieden ook kansen. De gegevens die de belastingdiensten eisen, zouden door het bedrijf zelf goed gemonitord en geïnterpreteerd moeten worden, om te kijken in hoeverre die gegevens misschien wijzen op ongewenste situaties en te grote belastingrisico’s. Het kan ook zo zijn dat die gegevens duidelijk maken dat het bedrijf er misschien goed aan doet de bedrijfsprocessen anders te organiseren.

Door samenwerking van fiscale specialisten kan een gezamenlijke verantwoordelijkheid voor het totale fiscale reilen en zeilen van de multinational ontstaan. Van daaruit is een beter zicht op mogelijk gewenste investeringen voor het bedrijf mogelijk. Zo kan fiscaliteit de plaats innemen die het misschien altijd al verdient: als belangrijk onderdeel van het totale overkoepelende ondernemingsbeleid.

Gratis artikel lezen en downloaden

SAP add on for ‘VAT Smartform PDF’ in Poland

We offer a new SAP add-on solution that creates automatically the VAT Smartform from SAP. When our SAF-T SAP add-on solution has been purchased this additional functionality will be managed under SAF-T cockpit as a different report.

Companies selling across European Union borders have to submit EC Sales List (ESL). This should contain the details of sales or transfers of goods and services to other VAT registered companies in other EU countries summarized per VAT registration number. The tax authorities in the EU use the listings to check whether VAT is declared by the parties involved in cross-border transactions (e.g. no mismatches).

In Poland a specific extra local requirement applies. As of 1 January 2017 taxpayers making transactions with EU members will be required to submit mandatory the declaration in electronic format.

The Polish tax authorities provides a VAT Smartform PDF that a company has to fill in with the requested information. That Smartform is mandatory and must be used to meet the requirement. Without automation support the data has to be entered manually by the company.

Entering data is a time consuming process. Besides the impact on internal resources, such manual activity increases the risk of data errors, i.e. with entering the VAT registration numbers in the Smartform.

Stricter penalties apply for individuals involved in tax fraud and penalties are introduced for taxpayers who do meet the legal requirement of submitting declarations in electronic format.

Source: SAP - submitting close to real time data to tax authorities

In Spain on 1 July 2017: immediate supply of Information to tax authorities in force

In Spain a new VAT reporting system will enter into force on the 1st of July 2017. The new Spanish requirements will have a huge impact on many (multi)nationals that run SAP.

SAP add on for SII

The SAP add-on is based on the selection of the VAT relevant transactions from the SAP ledgers. This can be done manually with a new SAP transaction or in an automated way via scheduled batch jobs. The SII relevant data from the selected source transactions are stored in a new customized SII table. That single source ensures your data integrity and consistency. There will be no need for maintenance of multiple systems as it will all be maintained in SAP itself. All reportable SII data are available via a single SAP cockpit which enables easy (tax risk) management of the SII reports.

Read more: In Spain on 1 July 2017: immediate supply of Information to tax authorities in force

SAP add-on for immediate Supply of Information (SII) in Spain

SII (“Suministro Inmediato de Información”) in Spain is about changing the current VAT management system which has been in place for 30 years, introducing a new bookkeeping system for VAT on the AEAT online system, by providing all billing records virtually immediately. 

The new Immediate Supply of Information accelerates the gap between recording or booking invoices and the actual realisation of the underlying economic transaction.

It is introduced because the current technological situation allows its implementation at this time, to improve both taxpayer assistance as taxation controls (e-tax audits).

SAP add-on solution

In Spain a new VAT reporting system will enter into force on the 1st of July 2017. The new Spanish requirements will have a huge impact on many (multi)nationals that run SAP.

Businesses classified as large companies will just have a couple of months left to adopt this new requirement in its processes, controls and systems.

It will be a real challenge. Failure to comply in time could result in penalties and increased risk of a tax audit. The goods news is that we developed already a SAP integrated SII solution.

That is not new for us as we have developed similar SAP add-on solutions before when SAF-T in Poland, Lithuania and Norway was introduced. SII is our next step in supporting clients that face IT business challenges.

We developed a SAP add-on solution by which the e-submission of the required data from AR and AP invoices is fully integrated in SAP without an external interface or use of external software.  With this add-on the submission of the requested invoices can be done automatically and in time.

Our SII for Spain is ready and functionality can be demonstrated via our own SAP environment.

Read more: SAP add-on for immediate Supply of Information (SII) in Spain

A SAP add-on to be able to cope with SAF-T and e-tax audits

Tax authorities around the world want to receive more frequent and faster tax relevant data for e-audit purposes to analyse Corporate Income Tax (CIT) and VAT positions taken to combat VAT fraud and to determine whether actually a fair share is paid (Base Erosion and Profit Shifting: 'OECD's BEPS').

More countries will therefore move to data request to monitor and electronic audits (e-audits) taxpayers. SAP itself does not provide an E2E solution to meet these (new) legal requirements.

More an more countries will implement 'the Standard Audit File for Tax Purposes (SAF-T) developed by the OECD. This format is intended to give tax authorities easy access to the relevant data in an easy readable format. This leads to much more efficient and effective tax inspections.

E-audits will be performed - using data analytics - on data submitted electronically by the taxpayers.

Read more

From tax trends to assessment to implementation

Lets just assume that tax transparency and disclosure of tax risks to the tax authorities is mandatory in force in every country and that the effectiveness of a tax control framework should be proven.

• Are OECD's Standard Audit File for Tax Purposes data requests (monthly and on request) - now rolled out in various European countries - the start of a new beginning for better audits by the tax authorities?
• Is it likely that tax authorities will get access to more sophisticated tax analytics tools?
• Do companies need better risk management tools to meet tax objectives set derived from business objectives?
• Do companies face additional tax risk due to (close to) real time data requests of the tax authorities - implemented for example in Brasil and will be in force in Spain per July 1, 2017 - and does it impact a company's audit defense, tax risk management, ERP systems and tax technology?

Without doubt, the answer to all questions is a resounding yes.

Source: From tax strategy to artificial intelligence to automating the tax adviser | Richard H. Cornelisse | Pulse | LinkedIn

From tax strategy to artificial intelligence to automating the tax advise

Innovation' and 'Tax strategy' have my interest. In the UK the Executive has to sign off the company's tax strategy and publish. The strength of the UK approach is that the Executive has to take position and also keep its promise as a public statement has been made.

This legal change realised that it has now become an Executive owned KPI to manage overall tax risks resulting that the supervisory board and external auditor have a responsibility to audit 'being compliant' as the company might face reputational risks when that promise is not kept.

Without such Executive sign off not much would have changed tax function wise. At least that is the lesson learned from the Dutch initiative: 'Horizontal Monitoring' where such a sign off and public statement was missing.

Do you see the difference from a governance perspective?

Source: From tax strategy to artificial intelligence to automating the tax adviser | Richard H. Cornelisse | Pulse | LinkedIn

Standard Audit File for Tax Purposes in OECD format

Creating XML SAF-T Structures directly in SAP ECC. SNI SAF-T is a SAP add-on that runs over SAP ECC, is compatible with OECD standard and covers the steps of creation of necessary structures in XML format including E-submission with signature and encryption.

Tax authorities, due to technological innovations, have become increasingly better in executing their tax audit. The probability that the Tax Authorities will issue additional assessments and penalties in the near future because errors in indirect tax are detected, increases by the day.

The SAF-T standard, originally created by the OECD, is intended to give tax authorities easy access to the relevant data in an easily readable format. This leads to much more efficient and effective tax inspections.

Tax authorities collect and analyze already indirect tax data (e.g. SAF-T for VAT). The focus is not only about timely and accurate VAT reporting but as well whether on high risk areas an effective tax control framework is in place. Tax risk management methods are assessed.

Source: Standard Audit File for Tax Purposes in OECD format

OECD – Consumption Tax Trends 2016

Tax revenues collected in advanced economies have continued to increase from last year’s all-time high, with taxes on labour and consumption representing an increasing share of total tax revenues, according to new OECD research.

The 2016 edition of the OECD’s annual Revenue Statistics publication shows that the OECD average tax-to-GDP ratio rose slightly in 2015, to 34.3%, compared to 34.2% in 2014. This is the highest level since the Revenue Statistics series began in 1965. An increase in tax-to-GDP levels was seen in 25 of the 32 OECD countries that provided preliminary data in 2015, while tax-to-GDP levels fell in the remaining seven countries.

Consumption Tax Trends 2016 highlights that VAT revenues are the largest source of consumption tax revenues in the OECD, and have now reached an all-time high of 6.8% of GDP and 20.1% of total tax revenue on average in 2014.

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