Simplify your multinational enterprise’s VAT reconciliation
Before the power of computers, VAT accounting was done by mere mortals. Human error was a regular occurrence, and mistakes could be traced directly back to the person who was responsible for reconciling the VAT on your books. Fast forward to 2021 and you’d expect that with the rise of automation and ERP systems, errors on VAT reporting are now the exception, not the rule. Unfortunately, this is not so.
The issue with cross-border VAT reporting
VAT is an indirect/reporting tax, which gives rise to intricate situations that can no longer be reconciled manually. ERP systems go a long way to ensure, among other things, streamlined processes and efficient financial reporting within large enterprises. But, while the system can handle basic VAT requirements, with modern supply chains and cross-border regulations becoming increasingly complicated, its functionality is not designed to process the resulting complexities.
Fines and penalties relating to incorrect VAT reporting can add up quickly and as such, most companies have already enhanced their system to minimise error. The problem, however, with large multinational enterprises is that they face sophisticated, and often confusing, VAT requirements. Standard ERP functionality doesn’t guarantee that their VAT reporting will automatically be correct. This means that increased customisation of their ERP package is required to cope with local and international rules and regulations as well as changes in the market.
The sensible solution
The path to accurate reporting is an intelligent VAT management solution for your enterprise’s SAP ERP. VATSolve is a highly secure and SARS compliant solution that improves cash flow and business efficiencies through automated and consolidated reporting. We have helped large South African corporates with a footprint in Africa – such as PPC Cement, Dischem, and Cashbuild – save between R20mil to over R150mil per month simply by increasing the accuracy of their VAT returns.
The VATSolve SAP-compatible solution enables your international enterprise to:
- Save money through fully auditable cash-flow management
- Consolidate multiple companies within one VAT number into one return
- Reconcile SARS returns to transactions and VAT201 and IT14SD financial reporting
- Improve the speed and accuracy of your VAT returns while ensuring they’re compliant
- Report VAT by tax period – even if this differs from your accounting period – providing a complete reconciliation between the two
Ensuring compliance is a time-consuming and finicky endeavour. Add cross-border financial transactions and the die is cast for a complex reconciliation and filing task. Accuracy requires transparent VAT reporting, management checks, and enquiries to give your organisation the confidence it requires to know that the total amount being paid to SARS is correct. With multilevel views, extracts, reports, pivots, and drill-downs available across a range of filters, VATSolve’s functionality allows your enterprise to automate VAT analysis and calculation at the click of a button.
Contact VATSolve today for a free demo based on your company’s real-time financials.