The road to VAT automation

20+ years of experience in VAT automation motivated me in writing the ‘road to VAT automation’. I tried to formulate it in different topics. This is the sixth one whereby I discuss what parameters are needed to automate.  My texts are meant to trigger discussion: How did you cope with VAT Automation in your company? What experiences you want to share? What questions you have?  I will be using the word 'VAT' throughout the entire blog, but it does cover indirect tax systems called GST as well as sales tax. Off we go again ... let's continue on the road to VAT Automation. The parameters needed to automate   The number of parameters available in the ERP system and the number of parameters which can be used for the determination and reporting by the selected VAT automation solution are determining the extent to which you can automate as well as the quality of the outcome. The quality of the outcome meaning: the extent to which you are compliant.   Goods v services A f

20+ years of experience in VAT automation motivated me in writing the ‘road to VAT automation’. I tried to formulate it in different topics. This is the fifth one whereby I discuss what (transactions/business flows) to automate first.  My texts are meant to trigger discussion: How did you cope with VAT Automation in your company? What experiences you want to share? What questions you have?  I will be using the word 'VAT' throughout the entire blog, but it does cover indirect tax systems called GST as well as sales tax. Off we go again ... let's continue on the road to VAT Automation. Add caption What jurisdictions first or what transactions first? As said in former posts, during the preparatory phase all information from all jurisdictions involved should be analysed. However, it is not possible to implement all jurisdictions at the same time. Moreover, and very unfortunate, the implementation phases are not indirect tax driven, indirect tax purposes are often not even c

20+ years of experience in VAT automation motivated me in writing the ‘road to VAT automation’. I tried to formulate it in different topics. This is the fourth one whereby I discuss the composition of the indirect tax team. A solid implementation team can make a huge difference, not only in respect of the quality of the outcome but also in respect of timing and costs.  My texts are meant to trigger discussion: How did you cope with VAT Automation in your company? What experiences you want to share? What questions you have?  I will be using the word 'VAT' throughout the entire blog, but it does cover indirect tax systems called GST as well as sales tax. Off we go again ... let's continue on the road to VAT Automation. Once you have decided what solution you will implement you will need to compose your implementation team. I’ve written this post starting from the assumption it is a global implementation exercise. In many cases, it may not be about a global implementation, s

20+ years of experience in VAT automation motivated me in writing the ‘road to VAT automation’. I tried to formulate it in different topics. This is the third one whereby I discuss the set-up of the tax codes. Tax codes are crucial from a VAT perspective, not only for VAT automation purposes.  My texts are meant to trigger discussion: How did you cope with VAT Automation in your company? What experiences you want to share? What questions you have?  I will be using the word 'VAT' throughout the entire blog, but it does cover indirect tax systems called GST as well as sales tax. Off we go again ... let's continue on the road to VAT Automation. Tax codes are often the key drivers for VAT automation, so it is very important to pay a lot of attention to the set-up. Tax codes set-up The greenfield approach If you are in the luxuriously position to be able to start from scratch, the greenfield approach, then you simply must grab the opportunity to harmonise the set-up of y

20+ years of experience in VAT automation motivated me in writing the ‘road to VAT automation’. I tried to formulate it in different topics. This is the second one whereby I discuss the automation solution selection.  My texts are meant to trigger discussion: How did you cope with VAT Automation in your company? What experiences you want to share? What questions you ha ve?  I will be using the word 'VAT' throughout the entire blog, but it does cover indirect tax systems called GST as well as sales tax. Off we go again ... let's continue on the road to VAT Automation. Inside the ERP system or add on? The first question to be answered is whether you want to develop your VAT automation solution(s) inside your ERP system or use and add-on. Some ERP systems may have a module that allows VAT determination or VAT reporting to be automated, but still then, it may be worthwhile to compare the functionalities of all options.   What to consider when choosing your VAT determination

20+ years of experience in VAT automation motivated me in writing the ‘road to VAT automation’. I tried to formulate it in different topics. My texts are meant to trigger discussion: How did you cope with VAT Automation in your company? What experiences you want to share? What questions you have?   I will be using the word ‘VAT’ throughout the entire blog, but it does cover indirect tax systems called GST as well as sales tax. Off we go … on the road to VAT Automation.   What to automate ? When automating VAT, the first choice to be made is about what to automate: VAT reporting           and/or VAT determination   VAT reporting automation VAT reporting automation allows you to obtain some relatively quick results in respect of automation and maybe savings. Instead of spending hours and hours on manipulating spread sheets facing a high risk for making errors you can make your reports immediately and preferable in the format to be uploaded or to be sent to the authorities