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ERP - Localisation for global tax requirements

While many businesses invest in a new ERP for scalability and standard process, there is a need to ensure that key local country tax requirements are defined, blueprinted and met within the system. Where there are gaps, a business should consider how the requirements can be met outside the native ERP, through People, Process or Technology.

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ERP - Localisation for global tax requirements

  1. 1. © 2015 Grant Thornton UK LLP. All rights reserved. 'Grant Thornton' refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton UK LLP is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another's acts or omissions. This publication has been prepared only as a guide. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material in this publication. ERP - Localisation for Global Tax requirements While many businesses invest in a new ERP for scalability and standard process, there is a need to ensure that key local country tax requirements are defined, blueprinted and met within the system. Where there are gaps, a business should consider how the requirements can be met outside the native ERP, through People, Process or Technology. Tax requirements vary considerably While there are common themes and synergies, different countries across the globe often have diverse tax requirements which native ERP systems or standard implementation methodologies struggle to meet:  cash v accrual VAT/GST accounting  invoice content requirements  electronic invoicing  self-billing conditions  state and municipal taxes  sales and purchase lists  granularity of customer, vendor and material master data required to determine tax  complexities in tax determination  withholding taxes  taxable base  movement of own goods  Standard Audit Files for Tax (SAF-T)  ascertaining business status Implement best practice from Go-Live It is worth investing the time, effort and resource into the tax set up of an ERP to ensure scalable best practices are in place, for example:  common naming conventions for tax codes  tax sensitive GL accounts  automated tax determination  clean and complete master data  granular tax reports  standard operating procedures  tax control framework implemented  super users identified and trained  VAT/GST number validation Tax data is the foundation While any global tax function should encompass a combination of People, Process and Technology to meet international tax requirements, tax sensitive Data should always be the foundation. Technology alone is not the solution, instead it should be implemented with best practices and the implementation of a new ERP is the perfect opportunity to ensure business processes are tax-aligned. Why Grant Thornton? Grant Thornton has helped a variety of clients define their global tax policies both within their ERP systems, as well as in a third party tax engine like ONESOURCE and Vertex (both of which we have received specialist training and are certified implementers of their indirect tax solutions). However, we provide impartiality and are product agnostic, focusing on providing a solution to the relevant pressure point – enabling a genuine commercial discussion about pressure points and People, Process and Technology solutions. Grant Thornton's international network of member firms bring local knowledge and the VAT/GST and withholding tax technical experience to a single project team. Our international tax technical skillsets are essential Tax Professionals Deliver Value Tax-Aligned Business Processes Technology Implemented with Best Practices Tax Sensitized Financial Data People Process Technology Data
  2. 2. © 2015 Grant Thornton UK LLP. All rights reserved. 'Grant Thornton' refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton UK LLP is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another's acts or omissions. This publication has been prepared only as a guide. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material in this publication. for understanding our clients' requirements and configuring the solution to ensure tax compliance across the various countries in which the business operates. Our technical experience is critical in understanding the systems and their functionality and to blueprint a comprehensive and scalable tax design to minimize additional changes for future country rollouts. Contact Grant Thornton For further information, please contact: Karen Robb Alex Baulf Partner Associate Director International Indirect Tax International Indirect Tax Grant Thornton UK LLP Grant Thornton UK LLP T +44 20 7728 2556 T +44 20 7728 2863 E karen.robb@uk.gt.com E alex.baulf@uk.gt.com

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