Vertex – Indirect Tax

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Vertex – Indirect Tax Deloitte – Automating the VAT Return Process Seminar

7 May 2015


Agenda & Solution Overview

§ Introduction

§ Vertex Indirect Tax Returns • Reporting and Compliance

§ Vertex O Series for Indirect Tax • Global Tax Calculation system

§ Automating Indirect Tax • Tax Data Management through Vertex Enterprise

§ Q&A

3

Introduction


Vertex – The Standard in Tax Technology

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§ 30-year history in tax management and technology

§Global solutions for Indirect Tax

§Over 4,000 software installations worldwide

§Focused exclusively on tax technology and content

Vertex Indirect Tax Returns


Vertex Indirect Tax Returns

§ Global Returns Platform • Over 1,100 licences • Well Established and Stable • Supports Returns and E-file

§ Monthly Updates § Global Licence Options § Multiple Deployment Options

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Statutory Returns

§ VAT Return Replicas § ESLs and Intrastats § Line-By-Line Drill Through § Multi-Language Returns § Culture Support § Filing Reports with CSV Creation § E-File Support (see Roadmap)

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Roadmap

§ Countries Added Quarterly (around 60 countries supported by end of 2015) § Additional Information Reports § E-File capabilities

• Planned rollout of mandated countries • Delivery provided through monthly updates

§ Additional Enhancements Driven by Customers

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User Security

§ SQL Server Authenticated accounts § Role-Based Security

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Managing User Roles

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Importing Data – O Series

§ Pre-Configured Export

§ Minimal Mapping in Returns

§ Pure End-to-End • Content is Synchronized

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Importing Data – Other Sources

§ Two Import Types • New Records • Update Existing Records

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Importing Data – Customize § Rules – Simple Field-Specific Overrides § Scripts – Allows Complex Code § Filters – Removes Unwanted Data

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Import Scripts § User created C# code - script code executes during import process § Scripts control movement of data into system § Scripts perform transformations/validations § Similar to Tax Assist in O Series § Script development and maintenance will probably fall on a technical resource § Use Security to control user access to scripting § Scripting guide (API guide) and Development environment available on request

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Tax Data § Invoice-Level Details § Customisable Multi-Attribute Data Queries § Additional Spreadsheet Filtering


Administration of Returns § Administrator applies monthly updates

• Apply to both the program files and databases • Supplied from the myVertex website at months end • Contains improved functionality and new Research content • Provided tools fully automate the monthly updates • One Global update

§ Automate client update: • Auto update is built into application • Ability to deploy updates on Active Directory using MSI

§ Updates are continuous. No annual roll over or reinstall !

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The Tax Engine – Vertex O Series


Why Vertex O Series? § Ensuring upstream coding quality and consistency § Moving away from:

• Manual Processes – ERPs/Finance Systems/eComm platforms embedded with little or no tax content – Tax rate (and TaxCode) need to be set-up and maintained – Selection of TaxCodes in ERPs

• Risk of error, lack of consistency; turnover of staff; training/manuals/flow-charts, etc. • Shared Service Centres/outsourcing of AP functions

• Lack of local knowledge • Paid to process AP invoices

§ External Pressures • Greater scrutiny [internal and external]

– SOX, SAO, horizontal monitoring, co-operative compliance – Process, process, process – Visibility and openness


§ A data repository containing: • Tax Jurisdiction codes • Place of supply rules • GST/VAT/Indirect Tax rates • Taxability rules per category

§ A range of reporting tools to generate:

• Statutory Reports • Analytical and underpinning

reports

§ A tax calculation engine for global indirect taxes

• ‘VAT’ – Input (Procurement) – Output (Supplies)

• Complex Indirect tax systems – India; China; US; Brazil, etc.

§ A system that interfaces with Financial Systems to process appropriate VAT

What is Vertex O Series? Vertex O Series is:


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Vertex O Series Overview

Financial System (ERP)/eCommerce etc

TaxGIS [Jurisdiction ID]

External Interface

Request 1 4

Tax Professional • Administration • Configuration • Tax Workbench

Vertex O Series

2

Tax Calculation

Response

5

3

TPS Rates | Rules

Reporting Database

TaxGIS Tax Journal

Vertex Central

Vertex Returns 6 Other data

sources


SAP Tax Link AreaSAP ECC Enhanced

SAP RFC Data

Tax Service Engine

(Calculation and Jurisdiction

Identification)

SAP Interface Component

(SIC)

Vertex O SeriesSAP Vertex SIC

VertexXML

“Vertex Indirect Tax Accelerator for SAP”

Vertex delivered SAP ABAP Transport

VAT

Vertex Indirect Tax Accelerator for SAP ERP

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SIC 7.0

Sales CUT


Vertex O Series Tax Links For E-Business Suite

VertexO Series

TaxEngine

Oracle ApplicationsSales

Purchases

EB Tax Interface§ Defines Touch

Points w/Oracle§ Creates standard

set of APIs based on Oracle financial event§ Generates

WF Notifications§ Extensible

Attributes

Vertex Interface§ Translates EB Tax

interface data to Vertex specific record formats§ Calls the Vertex tax

packages to perform a service§ Populates results

into APIs for EB Tax consumption.

VertexSuppliedOracle

IntegrationComponent

(OIC)

Vertex Tax Links Client Extension

§ Sourcing Rules (Company, POA, Ship-To, Ship-From, Product, Tax Type, etc.)§ Configuration Preferences &

Process Options

XML

Request

XML

Response

ARCRM

APPO INV

FA

OM

PC

PBSVC


Embedded Global Content

§ Strong internal content maintenance processes • SSAE16 process covers content and content process – provided

by reputable organisation • Dedicated research team • Content relationships built directly with major expert networks and to the tax

authorities • Changes tied-back to legislation, gazettes, authority announcements, case law, etc. • Commitment to ongoing content development

Tax Data Management


Tax Data Management

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Multiple systems, reliance on manual processes, and thousands of man hours to adjust and tax-enrich the data.


Vertex® Enterprise

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Vertex® Enterprise


Enrich Data

Core VAT Return Process

Operational Reporting - Hindsight

• Insights (VAT position -General Ledger) • VAT determination • Partial Exemption Calculation • Trend Analysis • VAT tests

Deloitte VAT Data Analytics

Advanced Reporting – Foresight • Supply Chain Analytics • Scenario Planning (supply chain – business model) • Integration with other taxes (transfer pricing,

customs)

Business / Corporate / Shared Services

Other

Vertex O series

SAP

Manual Records

Vertex Enterprise

Financial Systems

Vertex® Enterprise with Deloitte Analytics

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Contact Information

§ Alan James, Director, Client Solutions • Telephone: +44 208 622 3890 • Email: [email protected]

§ Andrew Hallsworth, European Manager, Client Solutions • Telephone: +44 208 622 3526 • Email: [email protected] • http://uk.linkedin.com/in/andyhallsworth/

§ Mike Tomlinson, Account Executive • Telephone: +44 208 622 3903 • Email: [email protected]

mailto:[email protected]


http://uk.linkedin.com/in/andyhallsworth/


Documents

Vertex – Indirect Tax