VAT compliance in the SAP system
The correct VAT treatment of business transactions in SAP is a key requirement for being tax compliant.
Due to the complexity of the SAP system landscape and the multitude of tax-relevant parameters in master and transactional data, manual checks are often insufficient.
Incorrect VAT determination, incomplete documentation, or unidentified risks can lead to significant financial and legal consequences.
In practice, many businesses operate complex SAP landscapes in which tax-relevant settings have evolved over time and are often undocumented.
With the SAP VAT Check, KMLZ offers a three-stage audit concept that is modular and can be ordered either per module or as a whole:
Service:
- Kick-off as well as analysis of tax-relevant master and transactional data
Objective:
- Quickly and automatically create transparency
Result:
- Identification of systematic weaknesses, inconsistencies, and potential risks, as well as determination of concrete measures
Service:
- SAP VAT Check BASIC +
- Interviews, process-based assessment, and review of tax parameters
Objective:
- Detailed VAT assessment of processes
Result:
- VAT assessment including risk evaluation and as-is process documentation
Service:
- SAP VAT Check ADVANCED +
- Comprehensive review of the SAP customizing and the SAP authorizations as well as creation of a recommendation list for optimizing the tax determination. Review and, if necessary, support in the creation of a compliant process documentation.
Objective:
- Comprehensive VAT assessment of processes and their mapping within IT systems as well as the existence of a process documentation
Result:
- Complete documentation of the SAP configuration for VAT including risk evaluation and a compliant process documentation
Tax Transparency: Clear visibility into tax configurations and risks within the SAP system
Risk Minimization: Identification of sources of error and potential risks
Efficiency Improvement: Reduction of manual corrections and enhancement of data quality
Modular Structure: Audit of individual or multiple entities – scalable as needed
