Tax authorities, due to technological innovations, have increasingly improved their tax auditing. They collect tax data directly from the taxpayer's ERP systems periodically (SAF-T VAT), on-request (SAF-T VAT and CIT), and more real-time (e-invoicing VAT and TP).
Extensive VAT fraud exists globally in countries that introduced a VAT or GST system. The VAT-gap can be defined as the difference between the received and the theoretically calculated VAT-returns/GST returns.
A SAP VAT configuration review can be used as a counter measurement as part of a sound tax audit defense. The outcome of such a configuration review should show where VAT errors in SAP occur.
VAT is a consumption tax. It is collected in stages by the businesses (or intermediaries) and should be borne by the final consumer. Consequently, VAT is a transactional tax with the potential to impact all transactions with suppliers and customers.
Hungary and Spain introduced the submission of sales e-invoice data to combat VAT fraud as a post-audit method.
The change from version 2.0 to version 3.0 is not minor. Version 2.0 will no longer be accepted starting April 1, 2021. Similar to version 2.0, change requests of multiple kinds have been incorporated.
The 'Advanced Compliance Reporting' (ACR) service enables you to configure, generate, analyze, and electronically submit statutory reports that contain indirect taxes, such as value-added tax.
Greece requires taxpayers to submit VAT electronic reporting. It will include invoice reporting and e-books with e-ledger details.
Malaysia's government abolished the GST Act, and from September 2018, the new Sales & Service Tax (SST) regulation is in force. In line with the new regulation requirements, organizations need to submit (quarterly) returns.
When the rounding off set up in standard SAP conflicts with the decimal tax requirements, it would usually mean that the SAP setup has to be changed. That is a time-consuming change management process that could take months to implement.
The Indian government rolled out the electronic invoicing system for all business-to-business (B2B) transactions under the Goods and Services Tax (GST).
An SAP add-on enhances standard SAP itself., SAP add-on tax components are extra functionalities that do not come with the central SAP product. Various organizations have different requirements.
Hungary and Spain introduced the submission of sales e-invoice data to combat VAT fraud as a post-audit method.
Under a clearance model, the tax authorities will audit sales e-invoices near real-time and first validate and approve the supplier's invoices before those invoices are sent to the customers by the supplier or the tax authorities itself.
Countries have introduced e-invoicing as a clearance model or as a post-audit method. The legal format is usually an XML or JSON file.
Our large taxpayer clients are selected for mandatory e-invoicing in Egypt as the first wave. KG completed the development for the Egyptian SAP add-on, and the User Acceptance Testing is in the final stage before moving to the production environment.
In Hungary, taxpayers must report the domestic purchase invoices list to NAV on a monthly base as part of the VAT return. Often this reporting requirement is a manual exercise, especially when due to threshold applicable, the number of invoices was limited.
Over 1.4 million taxpayers are successfully using MTD for VAT. The UK will extend Making Tax Digital for VAT to all businesses below the VAT threshold from April 2022 to ensure every VAT-registered business takes the step to move to a new digital tax service.
Our SAP add-on already meets all the mandatory e-invoicing requirements. Our SAP add-on will include in the premium package 'E-way bill' functionality.
Portugal will launch B2G e-invoicing in phases. B2G will become mandatory in Portugal from January 1, 2021 and January 1, 2022.
The Egyptian Ministry of Finance has recently stated that its draft law about electronic invoicing will have positive economic effects. More VAT taxpayers will be registered, and VAT revenue will increase.
The adoption of the EU Directive 2014/55/EU of 16 April 2014 (the 'E-Invoicing Directive') made the use of electronic invoicing during public procurement mandatory.
On Friday, June 12, 2020, Greece Ministry of Finance, together with Independent Public Revenue Authority, published about the digital transmission on the platform of the Electronic Books myDATA.
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