Indirect Tax Logic
Simplify indirect tax processes in SAP systems.
Indirect Tax Logic (ITL) is a suite of plug-ins developed to expand some of the functionalities of SAP, thereby reducing time and effort and helping companies to comply with tax authority requirements.
Deloitte in the Netherlands acquired Tytho, a consulting and software company that provides its clients with sustainable tax automation and tax technology solutions. The combination created a team of highly skilled tax technologists with strong relationships in the broader tax technology community, and also Tytho's product suite of unique SAP add-on tax solutions. The ITL suite addresses some of the limitations of current SAP systems:
ITL: Tax Codes with Validity Periods
Tax authorities change rates frequently, and companies operating on SAP platforms therefore face the risk of running out of codes available in standard SAP, as well as high costs of maintaining the tax codes. ITL Tax Codes with Validity Periods is a solution for tax automation software to simplify the management of VAT rate changes – you simply have to "end date" the old rate and add a new rate with a validity period.
ITL: VAT Number Validation
Every company trading within the European Union is required, by law, to ensure that the VAT numbers of its customers are correct (for supplies within the EU). Failure to provide proof – for example via an extract of the VIES database, could have serious consequences to your company’s VAT position. ITL VAT Number Validation is an SAP add-on which enables users to execute the VAT number check within the master data. This eliminates the need to access the VIES website separately when you are required to check the VAT numbers of your customers.
ITL: Tax Determination (AR/AP)
Determining the correct amount of tax to pay can be challenging–especially when you have to deal with changing supply chains and a growing number of countries. Most multinational companies use SAP's Enterprise Resource Planning (ERP) software to automate their indirect tax determination. ITL Tax Determination is an SAP add-on – its design and user-friendly interface works seamlessly with your SAP system to deliver clarity and reliability in indirect tax determination and compliance, both in accounts payable and accounts receivable.
Using the ITL suite, Deloitte can help with:
- Tax automation (ERP)
- ERP/tax health checks
- Tax engine implementation and optimization
- Supply chain redesigns
- Transfer pricing
- Tax technology selection
- Technical support