data and indirect tax - kpmga growing number of tax administrations around the world are using...
TRANSCRIPT
Data and Indirect Tax
Global Indirect Tax services webcast series
—
26 February 2020
2© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.2© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Today’s Presenters
Niren Saldanha
Partner
Tax Technology
KPMG In the US
Alexander Zegers
Director
Tax Technology
KPMG in the Netherlands
Reece Duncan
Senior Manager
Tax Technology
KPMG in the UK
3© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Administration
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4© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.4© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Agenda
Setting the scene
Indirect Tax digital
reporting trends
What do
clients need?
Value proposition
How do we
respond?
Tax & Data solution
framework
What have we done?
Real life client use cases
Setting the scene:Indirect Tax digital reporting trends
6© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
VAT compliance trends: country examples
Papers
forms
Web
forms
UK MTD
Poland
SAF-T
Spain
SII
Hungary
Real-time
reporting
MX, BR,
IT, TR, KR
Chile, IndiaB
us
ine
ss
pro
ce
ss
imp
ac
t
System Impact
Fin
ancia
l
Traditional
Tax Form Filing
Digital file transmission required Electronic invoice required
Paradigm Shift
Digital Tax Reporting
Tax Process and Resource impact ERP Impact Digital Ecosystem Impact
Transformative
E-Invoicing Compliance
Optional ‘Post
Audit’ E-invoicing
Continuous Transaction Control
‘Clearance’ e-
invoicing and E-
Assessment
Residual (Digital)
Reporting
7© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
New CFDI for all Payments
LATAM example: MexicoTax ID
(RFC)
Digital
Signature
Digital
Stamp
Taxpayer
ERP XML
Recipient
Arc
hiv
eV
alid
ati
on
1–1
1+
8© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Real time reporting
Making Tax Digital
Electronic invoicing
EuropeA move to increased digital reporting
A growing number of tax administrations around the world are using systems or SAF-T (Standard Audit File for Tax) reporting, financial data submission, and e-
invoicing as a way of getting complete records of tax transactions and producing their own assessment of tax liabilities. Europe, Asia Pacific and Latin America,
are making the biggest strides in adopting digital reporting, with 14 EU countries now requiring the provision of some form of electronic data.
The map highlights the European countries that have implemented, or are in the process of implementing. We expect this to only increase in the coming years.
Summary — Europe
Planning for
SAF-T
Current SAF-T
Countries
Detailed VAT
Reports
Norway Austria
Spain
Luxembourg
France
Portugal
Lithuania
Poland
Czech Republic
Slovakia
Italy
Estonia
Latvia
Hungary
Romania
Hungary Spain
United Kingdom
Italy Greece
9© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.9© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Country highlight: UKKey requirements for making tax digital for VAT
MTD VAT return
API submission
Digital VAT records Digital links
VAT registered businesses (including self-employed and landlords) with turnover above the VAT registration threshold (currently £85,000) will have to
meet the new making tax digital for VAT requirements which come into affect from April 2019. The requirements are:
1 2 3
VAT returns must be submitted digitally via
the new MTD API process.
Businesses will need to maintain digital
records (i.e. transactional data).
Businesses will be need to demonstrate that
‘digital links’, rather than manual processes,
are used throughout their end to end VAT
return preparation process.
Indirect Tax & Data transformationthemes
12© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Lots of organizations have a data problem……Tax departments spent lots of time on non-tax related activities, like data collection, cleansing, processing, etc. —
mostly done in spreadsheets
Data extraction Data processing Compliance & insights
80% of the process in terms of time spent 20% of the process
Organizations should get the foundations right and reduce the
required efforts to 30%
Adding tax value by deploying insights
solutions and compliance software
13© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
What are organizations looking for?
Real-time access to transactional data
for tax purposes
Tax reconciliation automation
User-friendly visualizations
(dashboarding)
Insights to improve processes or quantify
risks/savings
Tax control framework including
data-driven continuous monitoring
Automating tax compliance processes,
cutting out manual processes
14© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
What are the challenges to achieve this?
The people in our Finance team spend a lot of time
doing manually oriented tasks to support our tax
compliance process — how do we reduce that?
I’ve heard the tax authorities are investing
heavily in technology so that they can carry out
data and analytics testing. I don’t know what they
may find with my organization.
Our organization has trouble
obtaining the data we need to
prepare our tax filings — the data often
comes in from many different
sources — is there a better way?
I spend most of my day trying to get
the information from the business, in
managing tax problems for
transactions which have already
happened — how do I prevent
problems from arising?
As a Tax Manager, I struggle to have
visibility over the activities or
transactions being carried out by the
business. Is there a way to help me
with this?
The budget in my organization will not be sufficient to allow me to hire new people, or to invest in technology to help me fix
some of our existing problems. How do I get started?
15© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.Tech
no
log
y e
nab
lers
Systems &
platforms
Processes
Compliance
Tax transformation through data-driven solutions
ERP Tax sensitisation(tax engine, blue printing, tax master data)
Data
Tax data management & intelligence(tax data strategy, tax insights & data warehouse
deployment)
Process & controls(end-to-end process review/improvement, tax control
framework)
Compliance automation(compliance readiness check, data preparation)
Tax savings & risk/compliance insights(reverse audits, health-checks, etc.)
People
Fo
un
dati
on
Data
-en
ab
led
pro
po
sit
ion
s
Indirect Tax function enablers Data-driven improvement areas
Tax transformation
Technologies
16© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.16© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
KPMG’s global tax data solution concept
Solutions
Simple, standardized and
broad-ranging ETL processes for
tax data
How does it work?
Common
data model
Cleaned
data
Raw data
Application
data
Tax Data Factory
Insights
Data collection and transmission
Indirect Tax data managementsolutions framework
19© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Tools, tools, tools……We should be ‘tools’
and technology agnostic!
20© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Indirect Tax data management frameworkCompliance
(‘last mile’)
Reporting
& insights
Data
foundation (TIS)
Extr
act
Tra
nsfo
rm L
oad
TIS common data model(Tax Data Warehouse)
Compliance
cockpit
Data
analytics
Trend
analysis
SAF-T
reports
Data
Qu
ali
ty C
hecks &
Reco
ncil
iati
on
s
Source data(ERP, Excel, Other)
Tax C
om
pli
an
ce E
ng
ines
(co
mp
uta
tio
n a
nd
retu
rns)
Data
collectionTax processes
Order-to-Cash
Purchase-to-Pay
Tax code determination(manual or automated)
Data
Data
Compliance
preparation
Electronic
Filing
In-depth knowledge about the tax
setup in the most commonly used
ERP systems:
— SAP
— Oracle EBS
— JD Edwards
— MS Dynamics
— MS Navision
Data extraction tooling
capable of immediate data
extraction (E-invoicing):
— Automated data extractors
(plug-in)
— ERP reports
— Data requests
Data warehouse for tax
architecture available in:
— MS SQL server
— Alteryx
— SAP HANA
Data visualization tools:
— QlikSense
— Power BI
— Tableau
VAT return preparations and
country specific solutions:
— KPMG Compliance Centers
— OneSource Compliance
— CCH Integrator
— Avalara
— Sovos
Technology Platform — cloud or on-premise (KPMG hosted/client hosted)
— KPMG Digital Gateway — SAP Tax Compliance
— ServiceNow
— Appian
Fin
an
ce
-to
-rep
ort
Use cases
27© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.27© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Use case
Tax data transformation
28© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Internal reporting
Financial
and BU
Tax data transformation — A pharma organization
Indirect taxERP system
Transfer pricing
Plan, budget, forecast
Data analytics report
Intercompany trans
Direct tax
Tax Planning
Multi-disciplined
Global tax logic
Multi-country reporting
Transaction history
GAAP/Stat/tax papers
Global tax rates
Multi-country compliance
Report
Online e-filing
Retention &
archiving
External e-reporting
Audited financials/
regulated reportsConsolidation
TBD
Record
Tax
Data mgmt
Aggregate
Map
Report
Analyze
Warehouse
Teradata
Manual data
collection
Provision
Compliance — Intl
Compliance — Federal
Compliance — SALT
Real time Daily Quarterly & annually
Portal/Community site/Collaboration
Workflow Group Calendar Dashboard Document Mgmt Global tax filings
Tax workspace/Tax process management
Tax Workflow Tax Calendar Entity Mgmt Audit Mgmt Tax Process Docs
Forecast
Cognos TM1
120+
Gather, analyze and control
Efficient reportingIntegrated processesTax sensitized data
29© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.29© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Use case
Tax analytics implementation
30© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Tax analytics implementation
FillingReporting &
insights
Data
foundation
Data
collection
Client issue:A member firm client wants to expand the
usage of indirect tax data analytics by the
business in order to improve the indirect tax
processes within the local teams and the
global Shared Service Centers by
leveraging their current technology
investment in setting up an on premise
data lake.
Scope: 20 European countries/registrations
25 end-users (1 per country + 5 SSC)
10 ERP systems ranging from SAP,
Navision and JD Edwards
30 VAT & TP analytics
Extr
act
Tra
nsfo
rm L
oad
Common data model
Data
Qu
ali
ty C
hecks &
Reco
ncil
iati
on
s
Source data Tax C
om
pli
an
ce E
ng
ines
(co
mp
uta
tio
n a
nd
retu
rns)
Compliance
preparation
Electronic
filing
Client HANA data lake Client OneSource
SAP
SAP
SAP
SAP
NAV JDE
VAT
analytics
Transfer
pricing
Master data
checks
Client power BI
31© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
How this solution streamlines the VAT compliance process
(Indirect) Tax data analytics & monitoring VAT compliance reporting
HANA — Tax data
warehouse
Real-time
A tempo review +
corrections in the
source system
Tax analytics
dashboards +
monitoring
Automated
Compliance
preparation
Local tax + Global taxTax authorities
KPMG Digital Gateway
34© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.34© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
KPMG Digital GatewayObjective: Create a harmonized, global digital platform
that puts tax technology solutions at client’s fingertips.
A single point of entry for clients
―A central landing page provides access to the technology services relevant to your
business
―Features key analytics that help you engage in tax discussion with leadership
―Provides a common user interface and single sign-on, built on the Microsoft Azure Cloud.
…with key enabling technology and integration across KPMG
applications
―Common elements are built in a way in which data is provided once and leveraged
across applications
―Both local member firm and global network applications may be accessed
―Data visualizations and reports are delivered in a consistent, compelling way.
Stay tuned for more….
Questions?
37© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.37© 2020 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Q&A
Niren Saldanha
Partner
Tax Technology
KPMG In the US
Alexander Zegers
Director
Tax Technology
KPMG in the Netherlands
Reece Duncan
Senior Manager
Tax Technology
KPMG in the UK
Thank you
© 2020 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG
International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm
vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor
to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be
accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
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