How to deal with sudden VAT rate changes in SAP?

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How to deal with sudden VAT rate changes in SAP?

Deloitte’s own-developed SAP Add-on solves this problem

Due to the COVID-19 outbreak, governments are taking several temporary measures to support the economy, with Germany as the most recent example who proposed to temporarily reduce VAT rates. Although these measures could be beneficial for the economy, rate changes cause difficulties for businesses who need to update their processes and SAP system, often within a very short timeframe.

SAP and VAT rate changes

Updating SAP with these changes could take up to 6 months. This results in three things; avoidable costs, additional pressure on the number of free tax codes available, and the risk of non-compliance.

In order to take away this burden, Deloitte has developed ITL Tax Codes with Validity Periods (ITL TCwVP) which seamlessly integrates into your SAP system.

How it works

ITL TCwVP is a solution to simplify the management of VAT rate changes. There is no need for you to create new tax codes for every rate change, but you can simply “end date” the old rate and add the new rate with a new time period.

With this solution, your SAP system will be agile and prepared for a changing environment in which VAT rate changes more frequently occur.

We have developed a rapid implementation plan to cater for these challenging COVID-19 times. The implementation timeline can be between 1 and 6 weeks depending on your setup and the scope of the requested work.

Finally

With the implementation of this solution you will reduce the avoidable maintenance costs of:

  • Tax codes
  • VAT reporting and compliance solutions
  • Reduce the risk of running out of tax codes
  • Be ready on time

If you have any questions regarding the above or if you would like a demo of the TCwVP SAP Add-on, please contact Jurgen de Kok or Neus Vicente Llodrà.

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