HOW STARBUCKS HAS REDESIGNED TAX

MARK HOUTZAGER,STARBUCKS EMEA TAX LEADER2 0 N O V E M B E R 2 0 1 9

INTRO: WHO AM I?

STARBUCKS TRANSITIONS: OPPORTUNITIES

THE NEW TAX TEAM

LESSONS LEARNED

3 | H o w S t a r b u c k s h a s r e d e s i g n e d T a x

Mark Houtzager

VAT specialist (PWC, Deloitte, independent)

Focus on international VAT, technology

Left Europe in 1999: Asia and US

Moved to London in 2017

Currently: Head of Tax for Starbucks EMEA:

Introductions

1. Brand reputation2. Governance, strategy3. Internal and external relationshipshttps://www.linkedin.com/in/markhoutzager/

4 | H o w S t a r b u c k s h a s r e d e s i g n e d T a x

1. Closing of Amsterdam Shared Service Centre, transfer

of knowledge to London:

Tax, Accounting, Supply Chain Organization

2. Unbundling of EMEA and UK businesses

3. Sale of important business unit to Nestle

4. Sale of NL, FR businesses to Alsea

Opportunity to restructure, rehire and restart

“From Excel to Alteryx”

Transitions, transitions

5 | H o w S t a r b u c k s h a s r e d e s i g n e d T a x

Tax Compliance Manager(accountant – transfer from our external auditor)

UK VAT Manager(tax specialist – newly recruited)

EMEA Customs Manager(customs specialist – newly recruited)

Tax Senior Analyst(data specialist – transfer from our Finance department)

Tax Senior Analyst(Italian tax specialist – newly recruited)

+ Significant tax accounting support from head-office

The New Tax Team

Goals

6 | H o w S t a r b u c k s h a s r e d e s i g n e d T a x

Eight drivers for change

7 | H o w S t a r b u c k s h a s r e d e s i g n e d T a x

1. From partner driven to process driven

2. Local validation of VAT boxes mapping

3. Finance process mapping

4. Single reconciliation template

5. Improvements in tax determination

6. Masterdata cleansing

7. Data warehouse and compliance tools

8. Standardization of source data

Lessons learned

• KPIs: daily error report

• Tax as a template for improved

business governance

• Improved standing with authorities,

shorter audit response time.

• Ongoing need for tax technology

support in the Technology department

• Not yet seeing significant time

savings due to many errors

• Now it’s AP’s turn !

• More data creates more

reconciliation errors – need to iron

out

• Comfort for SAO

• Master data quality (vendor / customer)

• Impact of errors identified: incoterms, bill

to/ship to/bill from/ship from.

• Business excited about tax team sharing

relevant data (eat in / take-out).

8 | H o w S t a r b u c k s h a s r e d e s i g n e d T a x

TA X L E S S O N S A C C O U N T I N G L E S S O N S O P E R AT I O N A L L E S S O N S

T H A N K YO UT H A N K YO U

© 2019 Starbucks Coffee Company. All rights reserved.