Tax Visibility Strengthens Strategic Control

With global complexity creating new compliance challenges for companies around the world, tax and finance teams must obtain a comprehensive understanding of their tax data and tax footprint. This allows organizations to ensure agility needed to respond to volatile conditions and shifting regulations.

To gain visibility, businesses must find solutions that help them centralize tax data, unlock critical insights, and mitigate risks.

Unlocking Visibility in Tax

To help businesses expand visibility within their critical tax functionalities, the Vertex O Series solution streamlines global tax determination and provides comprehensive visibility into an organization’s tax data and processes.

This visibility is crucial for modern businesses navigating complex and dynamic tax landscapes, transforming tax compliance from a static, reactive process into a dynamic, integrated strategy.

Vertex O Series achieves requisite visibility through several key features and capabilities:

• Centralized Control and Data Unification: The solution aims to automate and centralize indirect tax determination, serving as a single platform for managing global indirect taxes, including sales, use, and value-added tax, leasing telecom and local discretionary fees across industries and sub-sectors. This centralization means all tax-relevant data from multiple financial and procurement systems can be pulled from a single tax engine data repository, eliminating the need for time-consuming data aggregation for compliance reporting and enhancing overall visibility.
• Seamless Integration with Financial Systems: Vertex O Series integrates effortlessly with an organization’s various transaction systems, such as ERP, e-commerce, procurement, and other billing systems. This integration ensures that tax calculations are automated and consistent across the business, leveraging the rich data within these systems to improve tax accuracy and provide centralized control and visibility.
• Robust Tax Content and Rules: The system maintains continually updated tax rules and rates for 19,000 jurisdictions worldwide, ensuring accurate sales, use, and value-added tax calculations and reducing audit risk. This robust content and proprietary sourcing logic means that the right tax is applied to every transaction along the commercial lifecycle, increasing confidence and transparency in tax determinations.
• Advanced Analytics and Data Tools: Vertex maintains a data repository for historical audit, archive, and insight. With built-in tax analytic dashboards, Vertex delivers near-real-time insights, enabling proactive data governance, providing visibility into transaction details and nexus threshold tracking, configuration and rate change monitoring, and audit risk notifications. This allows for leveraging centralized tax data to produce insights on performance, risks, and opportunities for tax strategy optimization.

Why Visibility is Important

The visibility provided by Vertex O Series is paramount for several critical business functions:

• Reduced Audit Exposure and Risk Mitigation: By centralizing tax data and offering real-time insights, O Series helps businesses proactively handle risk and mitigate compliance errors. Accurate data and automated calculations reduce the likelihood of errors that could lead to costly complications and audit findings.
• Improved Compliance and Strategic Tax Optimization: Continuous compliance, supported by this visibility, allows tax teams to adapt to evolving regulations efficiently and test proactively. Centralized data visibility, scalable automation, and advanced analytics enable tax teams to streamline compliance, review response output, and unlock opportunities for strategic tax optimization. Tax leaders who embrace this approach are well-positioned to adapt to the evolving global landscape while driving meaningful value for their organizations.
• Increased Operational Efficiency and Collaboration: Visibility into tax data and processes helps identify inefficiencies and opportunities for quick pivot and greater automation potential. By automating routine tasks and enhancing data accuracy through features like address cleansing, real-time VAT reg ID validation, and lat/long conversion, O Series reduces manual effort and streamlines operations.

What This Means for SAPinsiders

Companies need understanding both inside and outside their organizations to remain compliant. Tax authorities are rapidly adopting digital transformation, introducing stricter requirements like real-time government reporting and advanced technologies for audit, making enhanced visibility essential for navigating these changes and meeting inquiries.

Internal visibility provides a clearer picture of opportunity. Centralized data visibility, scalable automation, and advanced analytics enable tax teams to streamline compliant invoicing, address issues with actionable insight, and unlock opportunities for strategic tax optimization or expansion. Therefore, tax leaders who embrace this approach can adapt to the evolving global landscape on a local level while driving meaningful value for their organizations.

Visibility drives innovation and collaboration. A lack of visibility hampers virtually every area of tax and finance. The visibility offered by Vertex O Series transforms tax and governance from a necessary burden into a strategic asset that empowers businesses to manage risk, optimize planning, and support growth in an increasingly complex global economy.