A PwC study showed that tax functions spend more than 50% of their time gathering tax data, but less than 30% on strategic tax analysis.
To stay both compliant and competitive, not only do you need to gather the right data, but it’s essential to perform the appropriate analyses and clearly visualise the results in an effective and efficient way. Do you have the tools in place to gather meaningful VAT insights from your existing data?
See examples of VAT test results in the video.
PwC’s developed VAT Insights, a data analytics tool we use to download data from your enterprise resource planning (ERP) system and carry out predefined tests. The tool has proven its value to run before clients upgrade to a new ERP system like S/4 HANA or Oracle ERP. VAT Insights uses financial transactions from your ERP system so you can visualise via dashboards how the data is used by different functions within your organisation like VAT, accounts payable (AP), finance, Salesforce and the shared services centre.
Since we use predefined tests on a specific set of downloaded data, this analysis takes little time, but generates valuable insights. It provides a VAT health check to help you express your needs to IT and define your tax data strategy and requirements, now and into the future (e.g. recurring checks).
We can help you use VAT Insights to perform VAT checks externally or internally, and take your VAT process into the digital age. Alternatively, by licensing VAT Insights, your team can use the tool themselves.
Our VAT Insights tool has been developed to analyse large quantities of financial transactions. The analyses and tests built into the tool are as advanced as the VAT audit analyses performed by the tax authorities. In addition to information on the accuracy of your postings, VAT Insights also retrieves relevant management information from your ERP system.
The outcome of the analysis is processed in a report that provides insights into the overall VAT management of your purchase and sales processes, such as the use of tax codes and journals. We translate this into specific risks and opportunities to optimise your processes and VAT management.
Gain more information about your suppliers, customers and types of transactions, such as which tax codes are used, different tax codes per supplier/customer, or no tax codes used at all.
Detect potential risks and/or opportunities with respect to certain postings, like transactions without a tax code, transactions not reported or incorrectly reported in the VAT return, and inconsistent posting for the same supplier.
Detect hidden non-recovered (Belgian) VAT or late-recovered VAT.