financial transformation for the tax function leveraging

19
Financial transformation for the tax function leveraging SAP S/4HANA Per Evers, Jon H Rosseland, Andreas Sturesson – Deloitte Tax Management Consulting

Upload: others

Post on 30-Jul-2022

2 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Financial transformation for the tax function leveraging

Financial transformation for the tax function leveraging SAP S/4HANA

Per Evers, Jon H Rosseland, Andreas Sturesson – Deloitte Tax Management Consulting

Page 2: Financial transformation for the tax function leveraging

Global overview

SAF-T, e-reporting and alike

Mandatory but only submitted upon request by the tax authorities

Mandatory and submitted on a periodic basis, i.e. monthly, quarterly, other

Optional

SAF-T

Austria

Germany

Lithuania

Luxembourg

Netherlands

Norway

Poland: monthly

Portugal: monthly

Other E-REPORTING

Angola: monthly

Argentina: monthly

Brazil: monthly

China: monthly

Colombia: annually

Czech Republic: monthly

France

Hungary: real-time

Mexico: monthly

Paraguay: monthly

Peru: monthly

Singapore

Slovakia: monthly

Slovenia

Spain: near real-time

Turkey: monthly

United Kingdom: periodically

Page 3: Financial transformation for the tax function leveraging

What does the future hold?

Electronic reporting

KSAIntroduction of mandatory e invoicing for all taxpayers from 4 December 2021

EgyptMandatory e-invoicing for large taxpayers as from November 15, 2020 (Phase 1)

France Phased implementation of mandatory E-invoicing for B2B transactions

PortugalMandatory for non-residents to have a certified billing software as from July 2021

20

21

20

22

20

23

ChinaIntroduction of mandatory e-Fapiao in China by 2022

IndiaMandatory e-invoicing for all companies with an annual turnover of 500 Rs from October 2020

PolandPlans to introduce mandatory electronic VAT invoicing as from 2023.

AlbaniaMandatory e-invoice for B2B cashless transactions starting from July 2021.

e-invoice will be obligatory for B2G transactions starting from 1 January 2021, and cashless transactions (generally B2B transactions) starting from 1 July 2021.

VietnamMandatory e-invoice planned for July

PortugalInvoices must contain a QR code, and a unique identification number (ATCUD) validated by the tax authority from January

EgyptMandatory e-invoicing for certain companies as from February 15, (Phase 2)

EgyptMandatory e-invoicing for certain companies as from May 15th

(Phase 3)

SerbiaE-invoicing is set to become mandatory as of January

JapanImplementation of Qualified Invoice System planned for October 1

PhilippinesE-invoicing is set to become mandatory as from end of 2022

AlbaniaMandatory e-invoicing for B2G from January

IndiaMandatory e-invoicing for all companies with an annual turnover of 100 Rs from January

UgandaImplementation of e-receipts and e-invoicing from January

RomaniaPlans to introduce SAF-T- in 2022. (proposal)

UKMandatory implementation of Digital Links as part of the MTD initiative as from April

HungaryPlans to introduce SAF-T- in 2022 (proposal)

HungaryReal time reporting obligation extended to include B2C transactions, B2B IC supplies of goods and services, and other export sales

NorwayIntroduction of new XML VAT return from 2022

Page 4: Financial transformation for the tax function leveraging

Four core approaches

Types of digital reporting

e-Invoicing

Real-timeReporting

e-Filing

e-Audit

Response time

Real-time reporting putting pressure on finance functions:

• Spanish SII reporting: Electronic AP and AR invoice submission in near real-time – every 4 days

• Hungary real-time upload: Electronic submission of all domestic AR ‘B2B’ invoices in real-time: e-Invoicing to regulator

e-Filing focus on driving automated process from source to file:

• UK MTD: The UK’s Making Tax Digital initiative to automate the submission of VAT reporting.

• Poland JPK: Electronic submission of book information (warehouses, finance) on a monthly process.

e-Audit focusing on all data hosted within ERP and other systems. Slower to respond, but more comprehensive:

• Norwegian SAF-T: Require entire ERP system to be uploaded in electronic filing format. Potentially looking at entire back-up of ERP systems.

Immediate On requestPeriodic

Electronic transfer of invoice data as transactions are created and booked in accounting systems. Governments capture data as it is created:

• Italian SDI: Requires real-time submission of all B2B and B2C invoicing in electronic format

Page 5: Financial transformation for the tax function leveraging

1. A-melding▪ 2015▪ Payroll / Employee Taxes▪ XML

2. SAF-T Cash Register

▪ 2017 - 2019▪ Cash Transactions▪ XML

3. SAF-T Financial Data

▪ 2020▪ Accounting Data / Bookkeeping▪ XML

5. eVAT Listings

▪ Sales and Purchase Ledgers ▪ 2022 – 2023 ???▪ XML▪ Based on SAF-T

6. eCIT

▪ Corporate Income Tax▪ 2022 – 2024▪ XML▪ Linked with SAF-T

Digitalization of Tax

▪ 2022▪ New VAT return▪ XML▪ Based on SAF-T

4. eVAT

Standardization

Automation

AnalyticsSmart Audit

Direct Assessment?

Collect Data

The Digitalization of Tax ReportingMultiple new reporting requirements introduced – all based on XML and several connected with SAF-T

Page 6: Financial transformation for the tax function leveraging

Unify and Standardise the

Process

Operational Efficiencies

Become a Strategist

Take Control

Real-time Data-driven Tax Function

Business Transformation

Tax opportunities related to the SAP S/4 HANA transformation journey

Internal factors and opportunities for tax

Challenges for tax in a financial transformation

Migrating to S/4is a Life event for tax,

an opportunity to enhance data for all tax processes

S/4 implementations are new implementations not ‘Lift and

Shift’

S/4 pre-configured solutions

does not equal Pre-Configured for Tax

Page 7: Financial transformation for the tax function leveraging

Analytical

Tax calculation Validation and auditElectronic

documentsTax declarations

Calculation eInvoicing Periodic declaration Validation

Transactional

Complex challenges facing today’s tax organisations based on External factors

SAP Global Tax Management & Extensions

Page 8: Financial transformation for the tax function leveraging

SAP Global Tax Management

SAP Advanced Compliance Reporting (ACR)

• Manage statutory reporting worldwide with unified user experience

SAP Tax Compliance

• Automatically identify incorrect tax data and manage rectification

SCP

S/4HANA

SAP Tax Service

• Calculate accurate tax with minimum human intervention

• Universal integration to partner tax engines

SAP eDocument/Document Compliance

• Comply with many local regulations mandating the use of electronic documents

Transactional

Analytics

Page 9: Financial transformation for the tax function leveraging

SAP Tax Compliance at a glance

Exceptions –

ax Compliance hits

Repository

Examples:

Master data related checks

Transaction data related checks

Special checks like Chain transactions

Manage / Optimize Checks2.

Check

Connect data sources1. SAP Non- SAP

Routing

Receive / validate exceptions3.

Check SourceSystem

TM/IA/BU/ITT

Manage Tasks/Collaborate/

Status

Take corrective actions4.

Notifications

integrateddashboard

TM/IA/BU/IT

Page 10: Financial transformation for the tax function leveraging

Process Map – How SAP supports Tax Compliance

Generic process of continuous tax monitoring and risk management

Sample process of existing solutions: partially automated

Holistic process to enable a tax control system based on SAP Tax Compliance

Identification of

tax compliance

requirements

Identification of

tax compliance

requirements

Definition and

implementation

of checks

Scheduling and

execution of

checks

Report results

and analysis of

compliance issues

Triggering and

execution of

mitigation tasks

Tracking and

remediation of

findings

Reporting and

Optimization

Definition and

implementation

of checks

Scheduling and

execution of

checks

Report results

and analysis of

compliance issues

Manual process

Central repository of

checksScenario management

Continuous identification

of compliance issues

Automated initiation of remediation with status

management and documentation

(audit trail)

Reporting and

optimization

Page 11: Financial transformation for the tax function leveraging
Page 12: Financial transformation for the tax function leveraging
Page 13: Financial transformation for the tax function leveraging

Advanced Compliance Reporting - considerations

VAT Periodic Return

Withholding Tax

EC Sales List

Financial Statement

Audit Files

VAT Sales and Purchase Ledger

Balance of Payments

Asset Reporting

Foreign trade declaration

Transport Tax

Goods and Service Tax

An

y legal repo

rting req

uirem

ent

Advanced Compliance Reporting

S/4HANAS/4HANA Cloud

Design TimeRun time

SAP Cloud Platform*

Central FinanceSAP HEC

Page 14: Financial transformation for the tax function leveraging

Define, Consume and monitor the activities around your reporting process

End-to-end 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.

Page 15: Financial transformation for the tax function leveraging

What SAP S/4HANA for advanced compliance reporting can do for your business

Legal compliance

Globally compliant with easy adoption of legal changes, different legal formats and

direct submission

Flexibility

Fast adoption of constantly changing legal reforms and business needs through flexible rules and extendible design environment

Transparency

Dashboard reporting status

Full audit trace and embedded analytics

Advanced Compliance Reporting

Reduced TCO

E2E legal reporting process within one solution

ONE platform

Page 16: Financial transformation for the tax function leveraging

Vision – Tax in SAP

Tax Digital Boardroom / CockpitTax Function Management, Analytics, Scenario creation, Create Value

Tax CalculationsTax

ProcessingTax

ValidationsTax

ComplianceFinancial Reporting

Digital Real Time

ReportingTax Audit

CIT

Tax

use

rA

cces

sTa

x M

anag

emen

t

Master Data & Transactional Data

Invoicing (P2P, O2C and Intercompany)

VAT/GST/SUTTPWHTOther

SAP ACR

SAP Document

Compliance

SAP PaPm TP Documentation SAP Tax Cpompliance

SAP Tax Service

Tax Audit Tracker

DAC 6 ToolSAP Add-on

SAP

Co

re S

/4

Page 17: Financial transformation for the tax function leveraging

Unify and Standardise the

Process

Operational Efficiencies

Become a Strategist

Take Control

Real-time Data-driven Tax Function

Business Transformation

Tax opportunities related to the SAP S/4 HANA transformation journey

Internal factors and opportunities for tax

Challenges for tax in a financial transformation

Migrating to S/4is a Life event for tax,

an opportunity to enhance data for all tax processes

S/4 implementations are new implementations not ‘Lift and

Shift’

S/4 pre-configured solutions

does not equal Pre-Configured for Tax

Page 18: Financial transformation for the tax function leveraging

Q&A

Page 19: Financial transformation for the tax function leveraging

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.