SAP Global Tax Management


Global Tax Management: An Overview and Key Considerations

What is Global Tax Management

Global tax management is the process by which tax managers evaluate the global taxability of an organization’s industry, corporate structure, business model, operations, products or services, business activities, and daily transactions.

To ensure global tax reporting requirements are met accurately and consistently by all subsidiaries across multiple tax jurisdictions, global tax management requires a holistic view of an organization’s entire flow of transactional data across its entire value chain.

Global tax management brings together disparate technologies from multiple vendors, such as SAP, Vertex, Sovos, Avalara, Thomson Reuters, and different currencies and various regulators, contributing to complexity across the tax function.

Global Tax Management: An Overview and Key Considerations

What is Global Tax Management

Global tax management is the process by which tax managers evaluate the global taxability of an organization’s industry, corporate structure, business model, operations, products or services, business activities, and daily transactions.

To ensure global tax reporting requirements are met accurately and consistently by all subsidiaries across multiple tax jurisdictions, global tax management requires a holistic view of an organization’s entire flow of transactional data across its entire value chain.

Global tax management brings together disparate technologies from multiple vendors, such as SAP, Vertex, Sovos, Avalara, Thomson Reuters, and different currencies and various regulators, contributing to complexity across the tax function.

For many organizations, global tax management typically involves these three steps:

  • Define compliance needs worldwide across all operating units, lines of business, tax jurisdictions.
  • Map businesss processes to govern how compliance should flow through the organization globally.
  • Implement technology solutions that can accurately collect information and content updates from disparate sources in alignment with defined business processes to deliver master data and financial information asynchronously as required.

Key Considerations for SAPinsiders

Understand the growing complexity of global tax management. Organizations considering different areas of the world for new potential opportunities must be aware of how these business interests can affect the local country’s taxation. Changing legislation and mandates around global tax management is becoming ever more complex as organizations face growing challenges in evaluating how their growth initiatives may impact global tax liabilities.

Evaluate your content needs for effective global tax compliance. Tax managers need to consider what global activities may be taxed in which locations and ensure that they are meeting the tax requirements of each country accurately and promptly. Greater global tax compliance efficiency can help organizations reallocate accounting resources to support revenue-generating tax compliance opportunities.

Implement technology to simplify global tax management needs. The Ingram Micro and Dow Chemicals case studies provide best practices outlining how technology makes it possible to create a global view of the enterprise, enabling tax function managers responsible for global compliance, global reporting, and global controls. Content updates that provide real-time data on tax jurisdictions, tax rates, and tax content changes are critical for efficient global tax compliance.

78 results

  1. image of warehouse

    MCJ Supply Chain Solutions prevents tax risk as it expands into new countries

    Reading time: 1 min

    MCJ’s primary focus is the distribution of automated guided vehicles, used primarily in warehouses. A joint venture between a US-based and German-based company, MCJ was in need of an automated tax compliance solution that could scale as the company expanded rapidly into different countries.  
  2. Global Tax Management Research for EMEA

    Reading time: 2 mins

    In Europe, tax compliance complexity is magnified by the number of different countries and regions, each with its own unique set of rules and regulations. As a result, European businesses must take a more robust approach in order to stay compliant. This helps explain why the need to improve accuracy and reduce complexity around indirect…
  3. global tax

    Global Tax Management

    November 17, 2022

    The globalization of business and the digital transformation of the economy have had a profound impact on global tax management. Multinational companies now face a complex indirect tax compliance environment, requiring them to develop their global tax management and compliance processes to embrace new technologies and data-driven insights. The challenges posed by this unfamiliar landscape…
  4. Global Tax Management in the Cloud

    Re-Imagining Global Tax Management in the Cloud

    October 25, 2022

    Today’s organizations strive to comply with ever-changing tax laws efficiently, driving business leaders to align these concerns with cloud and ERP modernization initiatives. However, modern ERP systems also come with their own set of challenges, particularly when it comes to global tax compliance. These critical considerations help demonstrate why digital transformation of tax and finance is…
  5. Global Communications (World Map Courtesy of NASA)

    Global Tax Management – Benchmark Research Report

    Reading time: 2 mins

    SAP clients aim to modernize global tax compliance processes. This study examines the relevant challenges, strategies and technologies.
  6. tech insights image

    Enhance Global Tax Management with Testing Automation  

    Reading time: 5 mins

    Indirect Tax Complexity Driving Constant Functionality Changes Real-time reporting and e-invoicing mandates drive organizations to continually update and enhance global tax management functionality to accurately assess tax obligations promptly and avoid fines or other penalties. Growing complexity in compliance management, governance, and regulations is the primary driver of an organization’s digital tax strategy, according to…...…
  7. Video: Sovos talks Economic Nexus Complexity

    Reading time: 1 mins

    As organizations grow and expand their operations into new markets, the complexities of indirect tax compliance can increase dramatically. Businesses selling into multiple tax jurisdictions need a global tax management solution that provides enhanced tax determination and calculation capabilities to support complex product and service taxability requirements. An example of increasing indirect tax complexity is…...…
  8. Growing Need for Sales Tax Compliance Automation

    Reading time: 4 mins

    Economic Nexus Complexity is Increasing Across the U.S., Creating Challenges for Tax Teams  Sales and use tax compliance is growing more burdensome for organizations that are conducting business in the U.S. due to complex economic nexus mandates. Many states are expanding their sales tax jurisdiction to include out-of-state companies with a certain level of sales…...…
  9. Video: Vertex Talks Indirect Tax, O2C, P2P Testing Automation

    Reading time: 1 mins

    A global tax engine is a core component of a robust digital tax strategy designed to streamline an organization’s indirect tax compliance lifecycle. The successful implementation of a tax engine requires a well-defined and executed testing plan. When testing a new tax engine, it is essential to consider all possible scenarios to avoid real-world errors…....…
  10. Gunjan Tripathi

    How the Latest Cloud / Edge Engine Technology Offers Gains to Both SAP IT and Business Teams

    For any transactional based systems, the most overlooked technology advancement is a tax determination engine. 80% of companies are unaware of how technology has progressed over recent years. This session will outline: • How this latest technology advancements works with SAP. • What are the resulting benefits for both IT and business teams.