Automating the Preparation of VAT Returns Deloitte LLP. All rights reserved.

Transcription

1 Automating the Preparation of VAT Returns

2 Our Agenda Current Trends in Indirect Tax Compliance Breakout Breakout Coffee Break Breakouts Configuring ERP Systems for VAT Compliance Best Practice & Technology in a Tax Centre of Excellence Vertex Thomson Reuters ONESOURCE Making the most of Excel Automating Reconciliation of VAT Returns to Intrastat, ESL s and General Ledger Breakout Achieving Best in Class Compliance & Using Technology to Reduce Tax Authority Risk Ratings Drinks and Canapes

3 What industries do you work in? Other 12% Consumer Business 11% Technology, Media & Telecoms 16% Real Estate 9% Energy & Resources 12% Financial Services 22% Professional Services 4% Public Sector 7% Manufacturing 4% Life Sciences and Healthcare 3%

4 What is the global revenue of your organisation Up to 20bn 4% Prefer not to say 10% Over 20bn 20% Up to 10bn 11% Up to 5bn 22% Less than 100m 9% Up to 250m 8% Up to 500m 6% Up to 1bn 10%

5 What s the scope of your responsibility for VAT & automation Other 4% Global 32% UK only 41% Regional (e.g. Europe or EMEA) 23%

6 What is your organisation s approach to VAT compliance? Centre of Excellence 4% Outsourced to a third party 6% Other 4% Centralised 41% Global tax department 19% Decentralised 16%

7 What software do you widely use to prepare VAT returns? ONESOURCE Indirect Tax Vertex Compliance 1% 3% JD Edwards 3% Other 10% Microsoft Dynamics 1% SAP 23% Microsoft Excel 43% Oracle 12% PeopleSoft 4%

8 Which reporting tools are used to prepare your VAT returns? Other 3% Vertex 1% Microsoft Excel (or similar spreadsheet application) 44% Native reports from ERP system 24% Customised reports from ERP system 26% ONESOURCE Indirect Tax Determination/ Compliance 2%

9 How many IT systems are used to gather data for VAT accounting & reporting 16 to 25 1% Don t know 11% More than 25 10% 1 10% 6 to 15 20% 2 to 5 48%

10 How many FTE days does it take to prepare your VAT return? Don't know 6% Less than 1 day 7% It varies 17% More than 10 days 17% Up to 10 days 18% Up to 5 days 35%

11 To what extent is your organisation s VAT compliance automated? Very high automation (e.g. use of tax data warehouse, automated analytical review of VATsensitive information) 0% Don t know 2% Significant automation (e.g. highly customised ERP process and/or use of tax engine and/or specialist VAT return preparation tools) 8% Limited (e.g. heavily reliant on Excel) 49% Some automation (e.g. automated purchase or invoice processing systems, including VAT determination) 41%

12 How many VAT assessments have you received in the last 12 months? Total Automation: very high/significant/some Limited Automation (e.g. heavily reliant on Excel) A B None % % % 1 to % % % 6 to % 3 5 % 7 13 % More than % 2 4 % 2 4 % Don t know % 8 15 % 5 9 % Total % % %

13 How important to you is the automation of VAT compliance in your organisation? Somewhat important 10% Not important 2% Don t know 4% Critical 12% Important 31% Very important 41%

14 Is the budget for VAT automation part of an existing tax technology budget? Not sure 43% Yes 15% No 42% Has the case for increased VAT automation been made in your organisation? Not sure 22% Yes 29% No 49%

15 How easy is it in your organisation to get budget for increased automation? Very easy 0% It varies/don't know 33% Fairly easy 22% Very difficult 8% Fairly difficult 37%

16 Breakouts!

17 Welcome Back!

18 Three Closing Points 1. What was the key point that emerged from your breakout session? 2 Is automation the key to best in class indirect tax compliance? 3. Can automation & technology reduce tax authority risk ratings and improve relationships. with tax authorities?

19 Can automation & technology reduce risk ratings and improve tax authority relationships?

20 Drinks and Canapes!