Automate your VAT management using a Tax Engine

Seminar recap

A tax engine helps your company move away from manual processes. This is a summary of the recent seminar “Introduction to Tax Engines” held by Deloitte and Vertex, where we discussed what you need to know about using a tax engine to automate your VAT management.

What is a tax engine?

A tax engine is an application that can be embedded in ERP platforms, enabling the automation of selecting the correct tax codes, minimising errors and consistency due to manual selections. It ensures consistency and standardisation of VAT treatment.

The tax engine helps to identify goods vs. service, different types of service, VAT rates, complex areas of place in supply chains and triangulation, call off- and consignment stock. It collects the parameters from your ERP system; the collected data is processed and recalculated and the VAT determination response will be sent back to the ERP system.

Who can benefit from this tool?

All companies who sells goods or services in multiple countries can benefit from this tool. The tax engine can be used for all type of industries such as the financial industry, retail industry, manufacturing and the medical industry.

Why do you benefit from it?

A tax engine can help the company to:

  • Minimise tax research maintenance since the tax engine will provide you with the latest VAT rules. 
  • Improve VAT determination accuracy since all VAT policies, VAT rates, VAT rules & logic are enforced by a single tax application.
  • Enable company to adapt quickly to changes or new acquisitions without an IT project.
  • Ensure a reliable, repeatable AP process, it replaces “user trust” with “system certainty”.
  • Improve VAT compliance, since the VAT determination at the time of the transaction will be accurate.
  • Improved tax department control, agility and scalability since the tax engine is operated and maintained by the tax department.
  • Reduce cost over time since you don’t have to spend time on tax research and re-configuration for every VAT change and business change over the years. 

Get started

If you wish to learn more about automating your VAT management, please reach out to us for an introduction, via Diala Wahlbeck.

Vertex Inc. is a leading tax software and services provider that empowers global commerce. Vertex connects customers and partners across all industries to deliver the world’s most trusted tax solutions for businesses to grow with confidence. It provides cloud-based and on-premise solutions that can be tailored to specific industries for every major line of indirect tax, including sales and consumer use and value added tax.

Visit their website, or reach out to Kjell Grönberg.

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