Indirect Tax Flow Analyser

The next generation of data analysis and visualization for indirect tax

More and more organizations are dealing with a large variety of goods and services flows. Business scenarios are becoming very complex, especially for indirect tax, as more parties are involved in the supply chain. This, in combination with complicated indirect tax legislation, as well as the latest trend of increasing stricter (real-time) indirect tax reporting and filing requirements by governments and tax authorities, requires a lot from an organization and a sophisticated indirect tax setup in SAP. For a tax department it becomes more difficult to keep an overview of all goods and services flows and it will be even more complicated to determine the right VAT treatment for each single transaction.

Gain control over your indirect tax position

PwC has developed the Indirect Tax Flow Analyser to instantly provide an up-to-date insight in the actual flow of goods and services that are running through an SAP system and to check if the VAT treatment of each individual transaction is correct and consistent.

The Indirect Tax Flow Analyser is a data analysis and visualisation solution that combines logistical and financial data. Where traditional VAT analyses only focus on financial data, this analysis goes deep into an SAP system and starts with the logistical data. This makes it possible to analyze even the most complex business scenarios such as ABC(D) transactions, drop-shipments, and local reverse charge rules.

Key Business Benefits

The Indirect Tax Flow Analyser is designed to visualize all flows running through your SAP system and to automatically verify the VAT treatment of each individual transaction. With this solution and the involvement of indirect tax and SAP specialists, PwC is able to provide clear follow-up steps and recommendations, enabling you to gain greater control over your indirect tax position and to become ready for the future.

Control over your indirect tax position
Insight into your supply chains
Cash flow opportunities and tax savings
Business process improvement
Improve data quality

Control over your indirect tax position

Overview of all identified opportunities and risks from a VAT perspective
Clear follow-up steps to realize opportunities and manage risks
Workshop to share SAP and indirect tax knowledge with your tax and IT department

Insight into your supply chains

Up-to-date insight in the actual flow of goods and services in SAP
Overview per company code, country, scenario type (AB, ABC etc.) and/or in total
Relevant information on top 10 customers/vendors, used Incoterms, applied tax codes etc.

Cash flow opportunities and tax savings

Involvement of VAT specialists to assess possibilities for optimization, based on tax savings, cash flow opportunities and risk mitigation. E.g. using different incoterms or VAT identifications numbers based on which the qualification of intra-EU sales could be optimized, optimization of warehousing locations and/or Customs arrangements

Business process improvement

System-related recommendations based on a comprehensive ITX system check and involvement of SAP specialists
Improvement of ITX set-up in SAP to reduce manual effort and (ongoing) maintenance

Improve data quality

Validation of all VAT identification numbers of your vendors and customers
High-level analysis of condition records and master data
Identify unique insights from your transactional data

Get ready for the future

Is your organization planning to move to the new version of SAP and do you want to know if your existing indirect tax setup in SAP ECC is sustainable for SAP S/4HANA? Or do you want to know if your current SAP systems are future proof from an indirect tax point of view?

Then please feel free to contact us for a demo or to further discuss the possibilities for your organization.