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© 2017 Deloitte Belgium                                                                          Deloitte Academy Seminar – SAF-T   1
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Headline  Verdana Bold
Deloitte Academy  Seminar
From e-Audit files upon demand to real-time
reporting. Are you ready for SAF-T?
Deloitte Belastingconsulenten/Conseils Fiscaux
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Before we start

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Agenda

  Topic                            Content                                             Presenter   Timing

                                             Welcome & Registration (sandwich lunch)

  Introduction                     Global Trend on Tax Transparency, audit and data    Frederik    13:00 p.m. – 13:15 p.m.

  Current evolutions in EMEA       From e-Audit to Real-Time Reporting                 Pieter      13:15 p.m. – 13:45 p.m.

  Addressing the Challenges        Technology, Process and Data                        Pieter      13:45 p.m. – 14:00 p.m.

                                                               Break

  Process Support                  Solution Approach                                   Pieter      14:15 p.m. – 14:45 p.m.
                                   Demo

  (Disruptive) Technology Update   Sample Case: Blockchain                             Frederik    14:45 p.m. – 15:15 p.m.

  Final Conclusions                Conclusion and next steps                           Liesbet     15:15 p.m. – 15:30 p.m.

© 2017 Deloitte Belgium                                                                               Deloitte Academy Seminar – SAF-T   4
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Introduction

© 2016 Deloitte Belgium   Deloitte Academy Seminar – SAF-T   5
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Introduction
Setting the scene

                          A variety of forces are combining to change
                          the world of compliance:

                           financial pressure on governments to
                            focus on tax take

                           public focus on transparency from
                            corporate taxpayers

                          This has resulted in a variety of new laws
                          and efforts at national and international
                          level

                          Tax environment now focussed on
                          transparency and data

© 2017 Deloitte Belgium                            Deloitte Academy Seminar – SAF-T   6
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Digital Tax is growing fast (some examples)
Countries worldwide are adopting new ways of monitoring, many of these are Digital:

Digital Tax Policy                                          Legal initiatives e.g. Country-by-
 VAT rules in digital economy                              Country Reporting (Global)
 e-Commerce and MOSS                                        OECD Countries

Cross-Border collaboration,                                 Electronic disclosure of VAT Ledgers
information sharing and joint audits.                        Poland
                                                             Czech Republic

Legal disclosure and approval (local)
 Netherlands: Horizontal Monitoring                        Electronic Audits and SAF-T
 UK: SAO                                                    Norway
                                                             Lithuania: iSAP
                                                             Germany: GDPdU
Electronic invoice disclosure and                            Poland: JPK
required e-invoicing                                         France: FEC
 Belgium: B2G                                               Luxembourg: FAIA
 France: B2G                                                …
 Italy: B2G
 Spain: SII                                                Modernization of tax authorities and
 Brazil: SPED                                              audit procedures.
 China: Golden Tax System                                   UK: Making tax Digital

© 2017 Deloitte Belgium                                                    Deloitte Academy Seminar – SAF-T   7
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Digital Tax is growing fast
Different ways of Electronic Audits

                                                                                             Next:
                                                                                          Blockchain ?
                                                                                                              • Digital technologies
                                                                    Standardized                                allow for more data to
                                                                     Electronic                                 become available.
                                                                    Transactions
                                                                                                              • The level of detail and
                                                                    and Ledgers
                                                                                                                the variety of data is
                                              Standardized                                                      increasing.
                                               Electronic                                Distributed/Shared
                                               audit files
                                                                                                              • Authorities explore use
                                                                                         Data                   of sophisticated, and
                              Electronic
                              audit files
                                                                                         Immutable Records      cognitive technologies to
                                                                 Structured Format
                                                                                         and audit trail.       use tax data.
                                                                 OECD SAF-T
                                            Structured Format    Elements                                     • End-to-end transparency
                                                                 Detailed line level
                                                                                                                is anticipated with the
                                            OECD SAF-T
                          Ad hoc Format
                                            Elements                                                            introduction of new
                                                                                                                disruptive technologies
                                                                                                                such as Blockchain.
                          Upon Request        Upon Request          Periodic and (Near) Real-Time

                                                 Data Frequency and Format

© 2017 Deloitte Belgium                                                                                                   Deloitte Academy Seminar – SAF-T   8
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From eAudit to Real-Time
Reporting

© 2016 Deloitte Belgium    Deloitte Academy Seminar – SAF-T   9
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eAudit upon demand
Example: Belgium

                   Data Requested               Lead Time                           Typical Activities

      SAP ERP Tables for FY2016       1 month for data extraction               Classic audit support

      • Financial/Tax Posting         +1 month, after additional information    Analyze and reconcile data, find
                                      requested from the inspector               underlying documents and off
      • Master Data                                                              system information

             Customers/Suppliers                                               Prepare for questions and responses

             Accounts/Cost centers

             Tax codes

© 2017 Deloitte Belgium                                                                         Deloitte Academy Seminar – SAF-T   10
SAF-T upon demand
Example: France

                   Data Requested                  Lead Time                 Typical Activities

      Fichier d’Écriture Comptable (FEC)    On-site: 1st meeting         Assistance on the preparation (format)
                                                                           and testing of the FEC file (content)
                                            Off-site: 15 working days
                                                                          Pro-active validations

                                                                          In advance

© 2017 Deloitte Belgium                                                                  Deloitte Academy Seminar – SAF-T   11
SAF-T Periodical
Example: Poland

                   Data Requested      Lead Time              Typical Activities

      JPK_VAT - VAT sales & purchase   Monthly     Assistance in the preparation and filing of
      register                                     the reporting

                                                    Embedded in compliance process

                                                    Challenge : link with compliance process
                                                     (to reconcile) + shorter lead-time

© 2017 Deloitte Belgium                                                   Deloitte Academy Seminar – SAF-T   12
Real-time reporting
Example: Brazil

                   Data Requested     Lead Time             Typical Activities

                     Sales invoices   Real-time   Set up of the process

                                                   Embedded in the sales and supply chain
                                                    process

                                                   Involvement in IT infrastructures

© 2017 Deloitte Belgium                                                   Deloitte Academy Seminar – SAF-T   13
Real-time reporting
Brazil: Invoice Flow

                                  3

                              2       4

                          1

© 2017 Deloitte Belgium                   Deloitte Academy Seminar – SAF-T   14
SAF-T: Introduction

© 2016 Deloitte Belgium   Deloitte Academy Seminar – SAF-T   15
SAF-T: Introduction
Europe: Standard Audit File for Tax (SAF-T)

SAF-T has been designed to capture data from a number of areas found in a typical business accounting system

     Periodically per legal entity     General ledger
                                       • Journals
                                       Accounts Payable
                                       • Supplier master data
                     Master
                      data             • Invoices
                                       • Payments
                              Trans-   Accounts Receivable
                              action   • Customer master data
                                       • Invoices
                   Balances            • Payments
                                       • Fixed assets
                                       Asset Master Files
                                       • Depreciation and
                                         revaluation
   Across taxes, including info        Inventory
   relating to                         • Product master data
   • VAT                               • Movements
   • CIT
   • Transfer pricing

© 2017 Deloitte Belgium                                                                            Deloitte Academy Seminar – SAF-T   16
The move towards Electronic Audits
The changing face of tax compliance

                               From taxpayers’ information systems to authorities’ audit software

  Yesterday                                                      Today
  • Manual keying of data                                        • Automatic or semi automatic
                                                                   keying of data
  • Slow and uncertain transmission of
    returns                                                      • Automatic production of reporting
                                                                   documents
  • Risk of loss of documents and
    penalties                                                    • Some e-filing/cross checking
                                                                   of information                               Need to
  • Sample-based approach for
    audits                                                       • Direct audits of ERP systems/
                                                                                                                update
                                                                   accounting software                        IT systems

  Tomorrow                                                       Today

  • (already today?)                                             • Safe transmission of data               Production of
  • New form of automatic controls                               • Automatic consistency checks              compliant
                                                                   performed                               standard data
  • In theory faster, surer, more precise,
    more efficient                                               • Incontestable proof of filing

  • Issue: Need for standardized                                 • General lack of consistency
    documents for taxpayers’ IT systems                            in testing/filing of data

  • Death of the tax return?                                     • Slight country variations in format
                                                                   and requirements

© 2017 Deloitte Belgium                                                                                  Deloitte Academy Seminar – SAF-T   17
SAF-T: upon request

© 2016 Deloitte Belgium   Deloitte Academy Seminar – SAF-T   18
SAF-T: upon request

 Country                  Legal ent.   Non-est. VAT reg.                               Comments

 Austria                                     
 France                                                  All VAT registered companies and branches.

 Germany                                     
 Lithuania                   
                                                           Exceptions:
                                                           - Taxpayers exempt from Standard Chart of Accounts ("PCN")
                                                              obligation
 Luxemburg                                                - Taxpayers subject to the simplified VAT return regime
                                                           - Taxable turnover whose annual turnover is below 120.000,00 EUR
                                                           - Small taxpayers with few transactions (+-500) so that manual
                                                              check is easier than submission of an electronic file.

© 2017 Deloitte Belgium                                                                                 Deloitte Academy Seminar – SAF-T   19
SAF-T: upon request

 Country                  Legal ent.   Non-est. VAT reg.                               Comments

 Netherlands                                 
                                                           All companies currently liable to maintain book-keeping information
                                                           electronically.

                                                           Exceptions:
                                                                 (1) Companies with VOES registrations in Norway
 Norway                                                        (2) Companies with turnover of less than 5 Million NOK
                                                                 (3) Companies with less than 600 vouchers a year

                                                           Companies liable to keep books that are covered by the exceptions
                                                           (2) and (3), but have bookkeeping information available
                                                           “electronically”, are still covered by the SAFT requirement.

                                                           -JPK_KR (Accounting books)
                                                           -JPK_WB (Bank account statement)
                                                           -JPK_MAG (Warehouse)
 Poland                                                  -JPK_FA (Invoices)
                                                           -JPK_PKPIR (Revenue and expense ledger)
                                                           -JPK_EWP (Revenue registry)

 Portugal                                                 Companies subject to Corporate Income Tax

© 2017 Deloitte Belgium                                                                                 Deloitte Academy Seminar – SAF-T   20
SAF-T: periodical

© 2016 Deloitte Belgium   Deloitte Academy Seminar – SAF-T   21
SAF-T periodical

 Country                  Legal ent.   Non-est. VAT reg.                                Comments

 Czech Republic                                          VAT Control Statement

                                                         i.SAF : VAT records
 Lithuania
                                                         i.VAZ, data relating to goods consignment/transport

 Portugal                                                 Companies subject to Corporate Income Tax

 Poland
                                                         JPK_VAT, VAT sales and purchase register

 Slovakia                                                VAT Control Statement

© 2017 Deloitte Belgium                                                                                  Deloitte Academy Seminar – SAF-T   22
Real-time reporting

© 2016 Deloitte Belgium   Deloitte Academy Seminar – SAF-T   23
Real-time reporting

 Country                          Requirement               Legal ent.   Non-est. VAT reg.                           Comments

                                                                                             Law has been declared unconstitutional because the
                          Electronic reporting for all
 France
                          sales with VAT                                                   fine for non-compliance was considered
                                                                                             disproportionate.

                                                                                             Businesses will receive in return from the tax
                                                                                             authorities a unique invoice number that they must
                                                                                             include on the invoice prior to issuance to their
                          Electronic reporting of all B2B
                                                                                             customers.
                          sales invoices with VAT above
 Hungary
                          HUF100,000. (From 1 July                             
                                                                                             The maximum fine for failing to comply with the new
                          2018)
                                                                                             rules will be up to HUF500,000 per invoice.

                                                                                             No other details yet.
                          Daily reporting of JPK_WB
                                                                                             early stage / an idea to cross check payments with
                          (Bank account statement)
 Poland
                          (From 1 Sept 2017)                                               supplies. Lots of resistance from business and
                                                                                             financial sector, so it is uncertain if it will go ahead

                                                                                             SII – Suministro Inmediato de Información
                          Electronic reporting for all
 Spain                    sales with VAT (From 1 July                                      4 day timeframe as of the moment they issue or
                          2017)                                                              receive them (deadline extended to 8 working days
                                                                                             between July 1st, and December 31st 2017)

© 2017 Deloitte Belgium                                                                                                      Deloitte Academy Seminar – SAF-T   24
Spain – Suministro Immediato de Informacion
Real-time reporting requirements

• The requirement is to submit invoice records, plus certain additional information, not the invoices themselves

• The regulations apply to large businesses (€6M turnover), those in a refund regime and VAT groups. Taxpayers can also
  optionally adopt

• The introduction of the SII regime removes the requirement to submit the monthly, quarterly and annual informative
  declarations returns (the Modelo 347, 340 and 390), not the VAT returns themselves that would still need to be filed

• The regulations apply to both invoices issued and invoices received. Different XMLs for invoices issued/received, capital
  goods, Intra-EU movements; payments in cash

The timing of submission is eight days after issuance for 2017, and reduces to four days in 2018

• For AR, this is from invoice issuance date

• For AP, this is from the date the invoice is accounted

• The tax authority will have a web portal for manual submission, where there are minimal transactions

• There will be a web service, which can integrate larger volume of invoice records – this could be “bolted on” to the
  ERP, or used as an XML import tool (either manually or through third parties)

• There will be some cross-validation of data by the Tax Authority of the invoice records

© 2017 Deloitte Belgium                                                                                 Deloitte Academy Seminar – SAF-T   25
Spain – Suministro Immediato de Informacion
Compliance impacts

•    Submission contents
     − Content of filings is not the same as the current purchase books – new reports will be required
     − Submission deadlines (tending to daily filings)
     − Descriptions are not standardized, but should not conflict with the VAT rate provided
     − Recoverable tax amount reported for each invoice – partial exemption adjustments? Impact to other Special Schemes (TOMS)?
     − Employee reimbursements – report against employee or underlying supplier?
•    Retroactive reporting solution required
          − The regulation is effective from 1 July 2017 – but also note that during July – December 2017, there is a requirement to
            retroactively submit all invoice records from 1 January 2017 to 30 June 2017
•    Non-ERP based transactions (e.g., intercompany invoices, retail systems, etc.) – how do these consolidate into the SII submission?
•    Timing of reporting of transactions, submission deadlines (daily submissions)
•    Submission and audit processes

                 ERP data            Consolidate
                                        and                          Web                  Tax Authority
                                                                                                                          Audit process
                                      validate                      portal                  database
                                        data
            External data

© 2017 Deloitte Belgium                                                                                                  Deloitte Academy Seminar – SAF-T   26
Spain – Suministro Immediato de Informacion
Key items
New obligations on transactions                                 Dates of implementation
recording
                                                                • Entry intro force by 1 July 2017.
• The new Anticipated Electronic VAT
  Reporting System (SII) entails the                              However, the VAT ledgers covering the first
  electronic supply, through the Spanish                          half of 2017 must be submitted before 1
  Tax Authorities on-line platform, of                            January 2018
  billing registries which are part of the
  VAT ledgers                                                   • Mandatory for large entities, VAT grouping,
                                                                  and companies included in the Monthly VAT
Deadline to submit the information                                Refund Registry -REDEME- (62.000
                                                                  taxpayers more or less = 80% of VAT
• Issued invoices: Four days from its issuance.          Key      revenues in Spain)
  If its issued by the recipient or a third party,
  eight days. Anyway, always before the 16th day
                                                       issues
                                                                • Optional for taxpayers who voluntarily want
  of the following month from the accrual date                    to enroll the system, by submitting the
• Received invoices: Four days from its accounting.               corresponding census form
  Always, before the 16th day of the following month
  from the accrual date
• Imports: Four days from the date in which the
  accounting document (in which the VAT quota
  is indicated) was registered. Always, before the              Ways of submission
  16th of the following month from the accrual date             • On-going basis through a “web service”
• Saturdays, Sundays and national holidays are                    from the Spanish Tax Authorities on-line
  excluded from counting                                          platform
• Temporary period: (1 July – 31 December 2017)
  deadline is extended from four to eight days                  • Taxpayers with few operations could report
                                                                  the information through a “web form”
• Billing by a third party: Eight days

© 2017 Deloitte Belgium                                                             Deloitte Academy Seminar – SAF-T   27
Challenges

© 2016 Deloitte Belgium   Deloitte Academy Seminar – SAF-T   28
Challenges

Challenges driven by the tax authority

• Short implementation time

• Requirements not/limited available in local language

• Tax inspector cannot bring clarity/lack of experience

Challenges driven by the company

Process

•    Indirect – direct – statutory accounting process

     − Local COA

     − Out of book adjustments

     − Opening balance/closing balance bookings

•    Reconcile with compliance process

© 2017 Deloitte Belgium                                   Deloitte Academy Seminar – SAF-T   29
Challenges

Technology

•    ERP landscape

•    Underlying sub systems

•    How to extract

•    How to validate

•    How to generate compliant files

•    How to communicate towards tax authorities

Data

•    Which data to extract

•    Where to extract from

•    Master Data completeness

•    How to reformat data / fixed values

© 2017 Deloitte Belgium                           Deloitte Academy Seminar – SAF-T   30
Break

© 2016 Deloitte Belgium   Deloitte Academy Seminar – SAF-T   31
eAudit: different ways to get
prepared

© 2016 Deloitte Belgium         Deloitte Academy Seminar – SAF-T   32
eAudit: upon demand or periodical
Country-by-country or a strategy

                                   Spain

                                                                          Spain

                                                               Portugal
                                                                            Belgium
                                                      Poland

                                           Portugal
                          Poland

© 2017 Deloitte Belgium                                                   Deloitte Academy Seminar – SAF-T   33
Country-by-country

                                                                                     Country specific
                                                                                       Data Model

                                                                Spain
                                                                                   Per jurisdiction, the specific data
                                                                                   model is linked to the e-process
                          Knowledge
                                                                                   Country data models often
                E-requirements per country:                                        captures info from
                 What can be requested/when                            Portugal    General Ledger
                                                       Poland
                 Indirect vs direct tax                                            Accounts Receivable
                 Penalties for non compliance                                      Accounts Payable
                 Overview of data fields                                           Fixed Assets
                 Overview of data format                                           Inventory
                 Matching with overall structured
                  data model

                                                     eAudit Process

© 2017 Deloitte Belgium                                                                                 Deloitte Academy Seminar – SAF-T   34
Strategic approach

                                                                            Spain
                                                                                                            Overall Corporate
                                                                                                              Data Model
                                                                                                           Structured data model is based on
                      Knowledge                                                                            the OECD SAF-T model.

                                                                                                           Data model captures info from
                                                                        Portugal
                                                                                                            General Ledger
         E-requirements per country:
                                                                                                            Accounts Receivable
          What can be requested/when                        Poland
                                                                                                            Accounts Payable
          Indirect vs direct tax
                                                                              Belgium
                                                                                                            Fixed Assets
          Penalties for non compliance
                                                                                                            Inventory
          Overview of data fields
          Overview of data format
          Matching with overall structured
           data model

                                                             eAudit Process

                                                 1 time analyze phase
                                                 Applicable to countries where no SAF-T is yet in place
                                                 Prepared for change upfront
                                                 Risk & opportunity drivers can be applied
© 2017 Deloitte Belgium                                                                                                Deloitte Academy Seminar – SAF-T   35
eAudit: Dashboard Demo

© 2016 Deloitte Belgium   Deloitte Academy Seminar – SAF-T   36
Real-time reporting process
Example for Spain

                                                                           3. SII XML file

      ERP                               SII convertor/   Communication                                          Spanish Tax
                                          generator        platform                                            Administration
                                                                         4. SII XML response

                           1. Raw SII                                     SII Communication
                              Data                                          process & error
                                                                               handling

                          FTP Server

© 2017 Deloitte Belgium                                                                        Deloitte Academy Seminar – SAF-T   37
Technology Update

© 2016 Deloitte Belgium   Deloitte Academy Seminar – SAF-T   38
Exponential technologies
Tax Analytics Implications

•     Exponential technology is already disrupting the
      work of tax professionals
•     At simplest level automation reduces the amount
      of mundane/repetitive task
•     Exponential technologies contribute to an increase
      in the availability of data, which in turn drive
      more sophisticated analytic approaches
•     Cognitive technologies can help analyse
      legislation, or help extract/categorise tax data
      from underlying sources
•     Scope for cognitive and analytics technologies to
      interact provides valuable predictive knowledge
      searches on tax technical issues

© 2017 Deloitte Belgium                                    Deloitte Academy Seminar – SAF-T   39
Connected world
Overview

• Interoperability of services and data is ever more
  important in the tax world
• Both tax authorities and commercial enterprises
  are embracing APIs (application programming
  interfaces) to better serve clients
• We are now seeing the advent of ‘Digital
  Government’ where interfaces enable data
  exchange in support of various government
  services
• There is future potential for corporate to leverage
  APIs as well as explore Blockchain as a means to
  maintain and demonstrate the reliability of shared
  data

© 2017 Deloitte Belgium                                 Deloitte Academy Seminar – SAF-T   40
Blockchain as a system
 More than crypto-currencies, Blockchains have multiple applications

                               As a Currency                                                                                                            As a System

                           Systems’ native currencies (e.g., Bitcoin, XRP)                                                         Systems’ network (e.g., Blockchain, the Ripple Network)
    • Measures the market value of goods and services
                                                                                               Blockchain             • Enables efficient transfer of value and information
                                                                                                 System               • Immutability of the system guarantees high-fidelity
    • Intermediates the exchange of goods and services
    • Can be reliably saved and retrieved as store of value                                                           • Allows for programmability

Each application serves                                                                                                                          Examples
as the foundation for                         Smart Contracts
more sophisticated uses                                                                                     •   Digital cheques / IOUs
                                               Program protocols to execute transactions
                                                when a set of pre-determined conditions are
                                                                                                            •   Automatic financial instruments
                                                met                                                         •   Parametric insurance contracts
                                                                                                            •   Automated market making
                                 Transfer of Value
                                  Enable low-cost, near real-time value transfer without an                •   Domestic and international remittance
                                   intermediary                                                             •   Internal payments settlement
                                  Expand to transfer of other assets beyond “money”
                                                                                                            •   Clearing and settlement of securities
                                                                                                            •   Exchange of low liquidity assets
                       Record Keeping
                        Create an immutable record without reliance on a trusted third party
                                                                                                            • Digital certificate of ownership for physical assets
                        Improve efficiency of record keeping via automation
                                                                                                            • Transaction validation of digital assets
                                                                                                            • Financial accounts
                                                                             Greater sophistication

 © 2017 Deloitte Belgium                                                                                                                                            Deloitte Academy Seminar – SAF-T   41
Vat automation in the Digital Supply Chain
Example for Physical Supply of Goods

Example – High Level overview of a system using electronic messaging with shipment approval and confirmation

                                  Approval                                             Approval
                                                                                        Code

                                                            e-Invoice

                                                         Paper Invoice

© 2017 Deloitte Belgium                                                                                        Deloitte Academy Seminar – SAF-T   42
VAT and Blockchain                                             1. Each transaction consists of one
 Possible Blockchain applications?                                 block.

                                                                2. Mutual agreement on content of the
                                                                   block.

                                                                3. Each Block is added to the chain to
                                                                   form a distributed ledger.

                           20                Message
                                     VAT N°
                                     Taxable amount and VAT
                                     Description good/service
                                     Etc.

                                                   20

Blockchain
Bank transfer

                                                  120

 © 2017 Deloitte Belgium                                                     Deloitte Academy Seminar – SAF-T   43
Some Design thinking to your ERP
How to prepare

ERP systems will continue to remain a backbone solution, driven by a legacy of master data and process
standardization. However needs connectivity and integration with a growing eco-system of applications both
internal and external
Faster:

From ad-hoc to monthly and real-time.                    Invoice and Document Management.

Immediate response required!                             Integration management.

Better:

Eliminate error prone process and manual interventions   Tax Reporting and Automation

Tax sensitive process should be touchless                Data and Process Analytics.

Controlled:

Measure and Monitor change and deviations                Business Process and Activity monitoring.

Full transparency                                        Process orchestration, full end-to-end integration

No Mistakes allowed.

© 2017 Deloitte Belgium                                                                        Deloitte Academy Seminar – SAF-T   44
Final Conclusions

© 2016 Deloitte Belgium   Deloitte Academy Seminar – SAF-T   45
Final Conclusions
Key Messages

                          Tax authorities are going Digital
                          in a response to combat fraud and to increase
                          fairness and efficiency in revenue collections.
                          SAF-T is one example but you need to respond fast.

                                        Technology is the tool, Data is the Fuel
                                        The availability of digital tax data is not determined
                                        by the existence of a predefined format.
                                        It is a business process produce and an ERP
                                        system’s legacy.

                                                         Tax, Business and IT Alignment
                                                         It assumes alignment, formalization and
                                                         standardization in business processes far beyond
                                                         your tax function.

© 2017 Deloitte Belgium                                                                                     Deloitte Academy Seminar – SAF-T   46
Final Conclusions
Next Steps

                          1
                              Get a view on your process and
                              data quality
                              Where are the gaps?

                          2
                              Get connected.
                              take the lead and ensure external regulatory requirements are
                              in line and with the internal organization. This includes the
                              business and IT.

© 2017 Deloitte Belgium                                                                       Deloitte Academy Seminar – SAF-T   47
Contact Information

                          Liesbet Nevelsteen          Pieter Van Dyck             Frederik Drappier
                          Partner,                    Senior Manager,             Senior Manager,
                          Indirect Tax                Tax Management Consulting   Indirect Tax

                          lnevelsteen@deloitte.com    pivandyck@deloitte.com      fdrappier@deloitte.com
                          Work : +32 2 600 66 53      Work: +32 2 800 25 65       Work: +32 2 749 54 77
                          Mobile : +32 496 57 48 79   Mobile: +32 497 53 29 73    Mobile: + 32 496 26 16 64

© 2017 Deloitte Belgium                                                                             Deloitte Academy Seminar – SAF-T   48
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© 2017 Deloitte Belgium
Annex

© 2016 Deloitte Belgium   Deloitte Academy Seminar – SAF-T   50
eAudit Process

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Aanalysis
Analysis of the technical Set up & Processes

•    Review of the current compliance processes

       •     Statutory process

       •     Direct tax process

       •     Indirect tax process

•    Review significant Business event for the period

•    Review Accounting systems landscape

•    Review tax audit history

•    Define country by country approach or structured data
     model

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Data Extraction
Extract the tax relevant data from the different source systems identified during the
analysis

     •     Which date should be extracted depends on whether are structured
           date model is put in place or a country by country approach is
           implemented

     •     Based on the outcome of the analysis, different data might need to be
           extracted from different source systems (main ERP, legacy systems,
           billing systems ….)

     •     Extracted data should be transferred to a data platform (data
           warehouse / data mining tool) for further handling in the next phases.      SAP DART
                                                                                       TJC
                                                                                       SNI
                                                                                       SAP OSS Notes
                                                                                       Data Warehouse
                                                                                       …

© 2017 Deloitte Belgium                                                                         Deloitte Academy Seminar – SAF-T   53
Data Validation
Extracted data should be validated prior to the assembly of the eAudit file

                             Records           Transactions             Data Mining
                             Master Data       Lines                     Tools:
                             Company Code      Vendors/Customers       –   Caseware IDEA
                             Fiscal Year       Tax Codes               –   ACL Analytics
                                                                          Customized Data
                                                                           Warehouse
                                                                           Queries
                                                                          …

© 2017 Deloitte Belgium                                                           Deloitte Academy Seminar – SAF-T   54
Data Reconciliation
The extracted data should reconcile official filings

                                      Automated

                                    Not Automated:

                                   Sample testing
                                      Criteria:
                                      - Fiscal Year
                                      - Business Events
                                      - Size
                                      - Etc.
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Assembly
Assemble the extracted data into an eAudit file according to the local requirements

       •     Different file formats (csv, xml,…)

       •     Per jurisdiction the file structure varies

       •     Local required default values can be expected
               •     e.g. Portugal – movement type =
                          •   GR = Delivery note
                                                                                TJC
                          •   GT = Transport guide
                                                                                SNI
                          •   GA = Transport document for own fixed assets      SAP OSS Notes
                          •   GC = Consignment note                             Data warehouse
                                                                                 queries
                          •   GD = Return note                                  Data Mining Tools:
                                                                                 –   Caseware IDEA
                                                                                 –   ACL Analytics

© 2017 Deloitte Belgium                                                                               Deloitte Academy Seminar – SAF-T   56
Process
Real-time vs upon demand/periodical

•    The same process applies but in real time reporting there
     are additional challenges

     •     Less preparation time

     •     No manual intervention

     •     eAudit process should be linked as close as possible to
           where the correct data is stored

     •     Automated communication protocol/platform

     •     End-to-end automated processes

© 2017 Deloitte Belgium                                              Deloitte Academy Seminar – SAF-T   57
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