Financial transformation for the tax function leveraging SAP S/4HANA - Per Evers, Jon H Rosseland, Andreas Sturesson - Deloitte Tax Management ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Financial transformation for the tax function leveraging SAP S/4HANA Per Evers, Jon H Rosseland, Andreas Sturesson – Deloitte Tax Management Consulting
SAF-T, e-reporting and alike
Global overview
SAF-T Other E-REPORTING
Mandatory but only submitted upon Mandatory and submitted on a periodic Optional
Austria Angola: monthly
request by the tax authorities basis, i.e. monthly, quarterly, other
Germany Argentina: monthly
Lithuania Brazil: monthly
Luxembourg China: monthly
Netherlands Colombia: annually
Norway Czech Republic: monthly
Poland: monthly France
Portugal: monthly Hungary: real-time
Mexico: monthly
Paraguay: monthly
Peru: monthly
Singapore
Slovakia: monthly
Slovenia
Spain: near real-time
Turkey: monthly
United Kingdom: periodically
e-invoice will be obligatory for B2G transactions starting from 1 January 2021, and cashless transactions (generally B2B transactions) starting from 1 July 2021.
Electronic reporting
What does the future hold?
Uganda China
Egypt Implementation of e- Egypt Introduction of
receipts and e- Mandatory e-invoicing mandatory e-
Mandatory e-
invoicing from January for certain companies Fapiao in China by
invoicing for large
as from May 15th 2022
taxpayers as from
November 15, 2020 (Phase 3)
(Phase 1)
Vietnam France
Hungary Albania Phased
India Mandatory e- Serbia Mandatory e-
invoice planned for
implementation of
Mandatory Real time reporting invoice for B2B mandatory E-
E-invoicing is set to July
e-invoicing for all obligation
extended to
cashless become mandatory invoicing for B2B Japan
companies with an transactions as of January transactions Implementation
annual turnover of include B2C
transactions, B2B
starting from Hungary of Qualified
100 Rs from January July 2021. Plans to introduce Invoice System
IC supplies of
SAF-T- in 2022 planned for
goods and
(proposal) October 1
services, and other
export sales
UK
Mandatory Norway
2021
2023
2022
implementation of
Introduction of new
Digital Links as part
XML VAT return
of the MTD
initiative as from KSA from 2022
India April Introduction of
Mandatory Egypt mandatory e Poland
e-invoicing for all Mandatory e-invoicing invoicing for all Romania Plans to introduce
companies with an for certain companies taxpayers from 4 Plans to introduce Philippines mandatory
annual turnover of as from February 15, December 2021 SAF-T- in 2022. E-invoicing is set to electronic VAT
500 Rs from (Phase 2) (proposal) become mandatory invoicing as from
October 2020 as from end of 2022
Portugal 2023.
Mandatory for non- Portugal
residents to have a
Albania certified billing software
Invoices must contain
a QR code, and a
Mandatory e-invoicing as from July 2021 unique identification
for B2G from January
number (ATCUD)
validated by the tax
authority from
January
Types of digital reporting
Four core approaches
Real-time reporting putting pressure on e-Filing focus on driving automated
finance functions: process from source to file:
• Spanish SII reporting: Electronic AP • UK MTD: The UK’s Making Tax Digital
and AR invoice submission in near initiative to automate the submission
real-time – every 4 days of VAT reporting.
• Hungary real-time upload: Electronic • Poland JPK: Electronic submission of
submission of all domestic AR ‘B2B’ book information (warehouses,
invoices in real-time: e-Invoicing to finance) on a monthly process.
regulator
e-Audit focusing on all data hosted
Electronic transfer of invoice data as
within ERP and other systems. Slower
transactions are created and booked
Real-time to respond, but more
in accounting systems. Governments
capture data as it is created:
e-Filing comprehensive:
Reporting
• Norwegian SAF-T: Require entire
• Italian SDI: Requires real-time
ERP system to be uploaded in
submission of all B2B and B2C
electronic filing format.
invoicing in electronic format
e-Invoicing e-Audit Potentially looking at entire back-
up of ERP systems.
Response time
Immediate Periodic On request
The Digitalization of Tax Reporting
Multiple new reporting requirements introduced – all based on XML and several connected with SAF-T
2. SAF-T Cash Register
1. A-melding
▪ 2017 - 2019
▪ 2015 3. SAF-T Financial Data
▪ Cash Transactions
▪ Payroll / Employee Taxes
▪ XML ▪ 2020
▪ XML
▪ Accounting Data / Bookkeeping
▪ XML
Collect Data
Digitalization of Tax
5. eVAT Listings
▪ Sales and Purchase Ledgers
▪ 2022 – 2023 ??? 6. eCIT
▪ XML
▪ Corporate Income Tax
▪ Based on SAF-T
Standardization ▪ 2022 – 2024
▪ XML
4. eVAT ▪ Linked with SAF-T
▪ 2022
▪ New VAT return
Automation
▪ XML
▪ Based on SAF-T Analytics
Smart Audit
Direct Assessment?
Challenges for tax in a financial transformation
Internal factors and opportunities for tax
Migrating to S/4 S/4 pre-configured solutions
S/4 implementations are new
is a Life event for tax,
implementations not ‘Lift and does not equal
an opportunity to enhance data
Shift’ Pre-Configured for Tax
for all tax processes
Tax opportunities related to the SAP S/4 HANA transformation journey
Unify and
Operational Become a Take Real-time Data- Business
Standardise the
Efficiencies Strategist Control driven Tax Function Transformation
ProcessSAP Global Tax Management & Extensions
Complex challenges facing today’s tax organisations based on External factors
Transactional Analytical
Calculation eInvoicing Periodic declaration Validation
Electronic
Tax calculation Tax declarations Validation and audit
documentsSAP Global Tax Management
SAP eDocument/Document Compliance SAP Tax Service
• Comply with many local regulations mandating • Calculate accurate tax with minimum human
the use of electronic documents intervention
• Universal integration to partner tax engines
SCP
Transactional
Analytics
S/4HANA
SAP Advanced Compliance Reporting (ACR) SAP Tax Compliance
• Manage statutory reporting worldwide with • Automatically identify incorrect tax data and
unified user experience manage rectificationSAP Tax Compliance at a glance
1. Connect data sources SAP Non- SAP
2. Manage / Optimize Checks
Examples:
Check Master data related checks
Repository
Transaction data related checks
Special checks like Chain transactions
4. Take corrective actions
Manage Tasks/ 3. Receive / validate exceptions
Collaborate/
Status
Routing
TM/IA/BU/IT Notifications Exceptions – TM/IA/BU/IT Check Source
integrated Tax Compliance hits System
dashboardProcess Map – How SAP supports Tax Compliance
Generic process of
Identification of Definition and Scheduling and Report results Triggering and Tracking and
continuous tax Reporting and
tax compliance implementation execution of and analysis of execution of remediation of
monitoring and risk Optimization
requirements of checks checks compliance issues mitigation tasks findings
management
Sample process of Identification of Definition and Scheduling and Report results
existing solutions: tax compliance implementation execution of and analysis of Manual process
partially automated requirements of checks checks compliance issues
Holistic process to Automated initiation of
remediation with status
enable a tax control Central repository of Continuous identification Reporting and
Scenario management management and
system based on SAP checks of compliance issues documentation optimization
Tax Compliance (audit trail)Advanced Compliance Reporting - considerations
VAT Periodic Return
Withholding Tax
EC Sales List
Any legal reporting requirement
Advanced Compliance Reporting
Financial Statement
Audit Files
Run time
VAT Sales and Purchase Ledger Design Time
S/4HANA Cloud S/4HANA
Balance of Payments SAP Cloud Platform*
SAP HEC Central Finance
Asset Reporting
Foreign trade declaration
Transport Tax
Goods and Service TaxEnd-to-end reporting process Define, Consume and monitor the activities around your reporting process Reporting Activities are preparatory steps like consolidation, exception analysis and post steps like posting of tax payables. They can be carried out before or after the legal report generation. With the flexible Reporting activities concept, all activities can be plugged in to enable end-to-end legal reporting.
What SAP S/4HANA for advanced compliance reporting can do for your business
Legal compliance Flexibility
Fast adoption of constantly
Globally compliant with easy
changing legal reforms and
adoption of legal changes,
business needs through flexible
different legal formats and
rules and extendible design
direct submission
environment
Advanced Compliance Reporting
ONE platform
Reduced TCO Transparency
E2E legal reporting process Dashboard reporting status
within one solution Full audit trace and embedded
analyticsVision – Tax in SAP
Tax Digital Boardroom / Cockpit
Tax Management
Tax Function Management, Analytics, Scenario creation, Create Value
Other WHT TP VAT/GST/SUT CIT
SAP
SAP PaPm SAP Add-on SAP Tax SAP Tax Tax Audit
TP Documentation Document SAP ACR DAC 6 Tool
Service Cpompliance Tracker
Compliance
Tax user
Access
Digital Real
Tax Tax Tax Financial
Tax Calculations Time Tax Audit
Processing Validations Compliance Reporting
Reporting
SAP Core S/4
Invoicing (P2P, O2C and Intercompany)
Master Data & Transactional DataChallenges for tax in a financial transformation
Internal factors and opportunities for tax
Migrating to S/4 S/4 pre-configured solutions
S/4 implementations are new
is a Life event for tax,
implementations not ‘Lift and does not equal
an opportunity to enhance data
Shift’ Pre-Configured for Tax
for all tax processes
Tax opportunities related to the SAP S/4 HANA transformation journey
Unify and
Operational Become a Take Real-time Data- Business
Standardise the
Efficiencies Strategist Control driven Tax Function Transformation
ProcessQ&A
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte is a leading global provider of audit and assurance, consulting, financial advisory, risk advisory, tax and related services. Our global network of member firms and related entities in more than 150 countries and territories (collectively, the “Deloitte organization”) serves four out of five Fortune Global 500® companies. Learn how Deloitte’s approximately 330,000 people make an impact that matters at www.deloitte.com. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms or their related entities (collectively, the “Deloitte organization”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No representations, warranties or undertakings (express or implied) are given as to the accuracy or completeness of the information in this communication, and none of DTTL, its member firms, related entities, employees or agents shall be liable or responsible for any loss or damage whatsoever arising directly or indirectly in connection with any person relying on this communication. DTTL and each of its member firms, and their related entities, are legally separate and independent entities. © 2021 For more information, contact Deloitte AB.
You can also read
