Tools

Indirect Tax Logic

Simplify and enhance Indirect Tax processes in SAP systems

Indirect Tax Logic (ITL) is a suite of SAP add-ons designed to simplify and enhance some of the functionalities of SAP, thereby reducing time and effort and helping companies to comply with Tax authority requirements.

Version 3.0 of our ITL suite of SAP add-on products released.

We are pleased to announce the release of version 3.0 of the ITL suite of SAP add-on products. With this version a wide range of new features and functions were added. Please refer to the SAP Certified Solutions Directory to find more information.

Deloitte ITL is a suite of SAP certified add-on products on both SAP ECC and SAP S/4 HANA :

The suite comprises of three products:

  • ITL Indirect Tax Determination
  • ITL Tax Codes with Validity Periods
  • ITL VAT Number Validation

The products add extra features and functions to SAP and are designed to
improve and enhance the quality of Indirect Tax Determination and Indirect Tax
Compliance.

ITL Indirect Tax Determination

Determining the correct indirect tax treatment can be challenging – especially when dealing with complex supply chains and a high number of countries. Deloitte ITL Indirect Tax Determination is an SAP certified add-on that helps you deal with these challenges; 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.

Key features:
  • Tax Supply Chain Control Framework assesses sales and purchase transactions in real-time and determines whether the (chain) transaction (scenario) is permitted/desired from a Tax supply chain perspective or not.
  • Indirect Tax Determination Framework determines in real-time the Tax treatment of the (chain) transactions that are deemed to be permitted by the Tax Supply Chain Control Framework.
  • Simulation Engine accessible through SAP Fiori and mobile applications
  • Analytics
Find more information on ITL Indirect Tax Determination here.

ITL Tax Codes with Validity Periods

Tax authorities change Tax rates frequently. Companies operating on SAP platforms therefore face the risk of running out of Tax codes available in standard SAP, as well as high costs of maintaining the Tax codes. ITL Tax Codes with Validity Periods is a solution that simplifies the management of Tax codes and Tax rate changes – In case of Tax rate changes you simply have to "end date" the old rate and add a new rate with a validity period.

Key features:
  • This product introduces the concept of Tax codes with validity periods to your SAP system. When Tax rates change, you will no longer have to create new 2-character Tax codes. All that is needed is end date the old rate and add a new rate with a new validity period.
Find more information on ITL Tax Codes with Validity Periods here.

ITL VAT Number Validation

Every company trading within the European Union is required by law to check that the VAT registration numbers (of its customers and vendors) are correct. Failure to provide evidence of such checks – for example via an extract of the VIES database, could have serious consequences to your company’s VAT position.

Key features:
  • This product introduces fully automated real-time validation of the VAT registration numbers and address data of your customers, vendors and invoices against the VIES portal of the European Commission and the BZSt portal of the German Tax authorities.
  • Full audit trail that provides evidence that the checks were performed.
Find more information on ITL VAT Number Validation here

The customer benefits

  • Increased VAT (Indirect Tax) compliance
  • Fully automated and connected Tax determination on all legs of complex chain transactions
  • Increased governance and control over supply chain
  • Erroneous/undesired transactions are identified before they happen (first time right)
  • Increased efficiencies, reduced Tax compliance cost (less rework)
  • Reduced IT maintenance costs
  • Rapid integration and deployment
  • Flexible and scalable (global reach)
  • User friendly interface and cockpit
  • Enhanced and simplified analytics
  • New product versions are upwards compatible

Our team

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.

If you would like to have more information about the ITL products please contact us.

Contact

Martijn van Hoof

Martijn van Hoof

Partner

Martijn van Hoof is a Tax Partner within our Tax Management Consulting Practice. With more than 20 years of experience in ERP and Tax Automation Consulting, he has developed a sharp vision on ERP and ... More

Eliza Alberts-Muller

Eliza Alberts-Muller

Partner

Eliza Alberts-Muller is a partner within our Tax Management Consulting Practice. With close to 20 years of experience in Indirect Tax and Tax Technology gained both industry and consulting she focused... More

Dave Keijzer

Dave Keijzer

Senior Manager

Dave is part of the TMC practice within Deloitte Having worked for over 30 years in the IT & software industry, his extensive experience is a great contribution to the development of the Tax Technolog... More