Solution Brief: Arco Tax Determination for SAP BTP Helps Streamline VAT Compliance
Meet the Authors
Key Takeaways
⇨ Tax teams need automated reconciliation of various indirect tax reports to strengthen their global tax management strategy.
⇨ Meridian Global VAT Services offers an SAP Industry Cloud solution enabling automated tax determination on SAP S/4HANA.
⇨ Integration allows finance and tax executives to optimize their existing SAP infrastructure, granting real-time access to VAT tax calculation and determination functionality from within the familiar SAP interface.
Tax compliance, particularly when it pertains to complex VAT flows for sales and purchases, represents a significant challenge. The burden of keeping pace with evolving tax laws while maintaining accurate tax computations weighs heavily on finance and tax executives within SAP organizations. According to SAPinsider’s 2023 Global Tax Management benchmark report, 80% of these teams recognize the critical need for automated reconciliation of various indirect tax reports to strengthen their global tax management strategy. Additionally, 75% of organizations say they must enhance the accuracy of their real-time indirect tax determinations.
For businesses operating in Europe, automating these processes and ensuring accurate VAT determinations is the foundation of a robust global tax management strategy. Arco Tax Determination for SAP BTP by Meridian Global VAT Services offers an SAP Industry Cloud solution enabling automated tax determination on SAP S/4HANA. The solution is built on the SAP Business Technology Platform and enhances the functionality of standard SAP for global VAT determination. When integrated with SAP systems, the Arco Tax Determination for SAP BTP is designed to provide an efficient, automated, and compliant solution for tax determination on complex VAT flows, addressing a critical pain point for SAPinsiders.
Integration Made Effortless with the SAP Ecosystem
Arco Tax Determination for SAP BTP integrates seamlessly with various SAP enterprise applications. This level of integration allows finance and tax executives to optimize their existing SAP infrastructure, granting real-time access to VAT tax calculation and determination functionality from within the familiar SAP interface. The elimination of manual data entry empowers tax teams to prioritize value-adding activities, leading to significant reductions in both delays and errors in tax processes.
Standardization through Centralized Control
Through the establishment of a centralized control system, Arco Tax Determination for SAP BTP promotes uniformity within tax management processes. Integration with the SAP BTP cockpit facilitates a single control point over VAT rules and tax determination decisions from a web-based user interface. The outcome is a uniform approach across multiple SAP S/4HANA instances, resulting in streamlined tax management. Precise, consistent VAT calculations are then leveraged to manage compliance effectively across various jurisdictions, diminishing compliance risks.
Boosting Functionality of Standard SAP Systems
The integration of Arco Tax Determination for SAP BTP enhances the functionality of standard SAP systems by delivering automated and compliant tax determination on intricate VAT flows. This augmentation allows tax managers to adapt to dynamic tax regulations swiftly, offering real-time VAT rate determinations. Automated tax calculation is a significant factor in minimizing errors, leading to improved VAT determination in SAP, while streamlining tax processes for enhanced functionality.
Harnessing the Power of Analytics for Decision Making
With an embedded analytics module, Arco Tax Determination for SAP BTP offers an in-depth look into tax performance by maintaining an audit trail of VAT calculations and detecting trends and discrepancies. This tool enables tax teams to evaluate business risks and pinpoint opportunities for process refinement. Visualization of trends and patterns enables decision-makers with data-driven insights, facilitating informed judgments regarding the applicability of VAT rules to specific transactions.
With Arco Tax Determination for SAP BTP, tax teams can save valuable time and resources, eliminating calculation errors and driving efficiency. By automating VAT compliance tasks, this SAP Industry Cloud offering allows tax executives to shift their focus to strategic tax planning activities, demonstrating its value in the modern global business environment.
What does this mean for SAPinsiders?
Leverage VAT experts to stay on top of constantly changing rate schedules. Business leaders must stay informed of the constantly changing VAT rates in Europe to avoid penalties and stay competitive. The diversity in rules and interpretations of these regulations makes it essential to have a VAT expert on hand. Without someone knowledgeable in this field, a business risks treating the same supply differently across jurisdictions within the EU, which increases the likelihood of underpayment and penalties.
Prioritize solutions that can accurately identify cross-border VAT transactions. Cross-border transactions can present significant challenges in terms of identifying the correct VAT rates and rules. With increased scrutiny from tax authorities, poor data from financial systems that struggle to navigate complex VAT determination can lead to serious financial and reputational risks. To mitigate these risks, businesses should seek out solutions that can efficiently and accurately identify cross-border transactions and ensure compliance with local tax laws.
Consider Vantage Always on Tax Determination. Meridian offers Vantage, a support and service package designed to provide peace of mind that your tax determination is always available and correct. The key components of Vantage are the Product Information Hub and the Vantage Service Desk. The Product Information Hub offers up-to-date tax information and resources, while the Vantage Service Desk provides dedicated technical support to quickly resolve any issues that may arise.
