Tackling VAT and Other Global Tax Management Complexity Concerns with Vertex

⇨ Tax complexity remains the primary concern for tax professionals, with over 41% noting it as the key factor in shaping their global tax management strategy.

⇨ To combat this complexity, many SAP organizations are adopting automation and centralizing tax data management, notably leveraging tools like Vertex Accelerator+ for SAP ERP to simplify and streamline tax workflows.

⇨ With tax regulations continuously evolving, companies must rely on agile and scalable solutions, such as the Vertex O Series tax engine, to ensure compliance and effectively handle tax challenges both now and in the future.

Tax professionals have a lot on their plates – maintaining compliance, managing digital transformation, addressing business growth and expansion, and the demand for improved reporting and analytics capabilities. But the one issue that concerns them most is complexity.

In SAPinsider’s recent Global Tax Management: State of the Market 2024 benchmark research report, more than 41% of respondents said that growing complexity in compliance management, governance, and regulations was the top factor that influences their global tax management strategy.

The process of complying with guidelines for important tax considerations like VAT is constantly in flux. And as more and more tax authorities introduce e-invoicing requirements, companies cannot afford to rely on outdated manual solutions to keep pace.

Overcoming Complexity

As SAP organizations search for solutions to streamline and simplify their tax management workflows, many are accelerating automation adoption and centralizing the management of tax data controls to enhance their overall tax strategy.

To reduce the complexity inherent in tax management, more and more SAP organizations are leveraging the tools provided by Vertex, such as Vertex Accelerator+ for SAP ERP. It offers users a single, centralized global tax management solution for SAP that helps to manage sales, use, and value added taxes while also providing organizations with a solid foundation for their moves to SAP S/4HANA.

By consolidating all global workflows into a single unified solution, users benefit from end-to-end visibility throughout the organization. Users can use chain flow visualization and drag-and-drop mapping of tax data to streamline set up, which helps support tax jurisdiction code conversion programs. It also automates the tax code process using tax code defaulting.

Powering Compliance

As tax requirements are constantly changing, companies need powerful solutions to keep pace. Vertex Accelerator+ relies on the power of the Vertex O Series tax engine. After mapping data in the SAP environment, the tax engine performs VAT calculations and Accelerator+ provides chain flow visualization tools. Vertex also offers an SAP Add-on, Tax Decision Tool designed to help companies who don’t require a full tax calculation engine.  Tax Decision tool provides the perfect stepping stone to the Vertex O Series tax engine when needed.

These features help organizations overcome tax challenges both now and in the future. Vertex’s solutions are scalable, allowing companies to grow and expand without worrying about whether their tax solutions can grow with them.

What This Means for SAPinsiders

With tax regulations constantly in flux, companies need intelligent and agile solutions to keep pace. Long gone are the days in which tax management professionals can simply adjust to the latest regulation using their outdated, manual solutions.

More and more, SAP organizations are turning to partners like Vertex to leverage agile, scalable, and powerful solutions. Vertex Accelerator+ for SAP ERP centralizes and streamlines essential tax management functions, providing an end-to-end view throughout an organization. Powered by the Vertex O Series tax engine, users can leverage Accelerator+ to automate essential functions. This helps them to keep pace with the shifting regulations and ensure compliance.