Presenters€¦ · Sovos Sarah Fane Head of Research sharedserviceslink ... Spain SII ERP Impact...

Presenters

Christiaan Van Der Valk

VP Strategy

Sovos

Sarah Fane

Head of Research

sharedserviceslink

• Send me your question early

• Use this opportunity to get the answers/info you seek

• The sooner you send me the question, the more likely it will be asked

• Remember to stay on for Q&A in the last 10 minutes of the session

Questions

-pay

Your copy of the slides

The slides will be available

after the webinar at

www.sharespace.digital

Surviving CTCs

Introductions

Trends

Readiness assessment

1

2

3

Agenda

1990 202020102000

Dig

ital

Inn

ova

tio

n

Audit Capability

Deficit

CTC disruption

Good Practice Implementation

Private Sector

Tax Administrations

The best of both worlds is possible

What’s going on?2

An epic battle is brewing in the cloud

I want borders, taxes, control…

Give me global markets, efficiencies

Web Forms

Mexico, Brazil, Italy, Turkey, Korea

Paradigm ShiftDigital Tax Reporting

TraditionalTax Form Filing

Paper Forms

© 2017 Sovos Compliance, LLC.

Impact on Systems

Imp

act

on

Bu

sin

ess

Pro

cess

es

TransformativeE-Invoicing Compliance

Digital file transmission required Electronic invoice required

ChileFi

na

nci

al

Op

era

tio

na

l

Tax Process and Resource Impact Digital Ecosystem Impact

Optional ‘Post Audit’ E-invoicing

Residual (Digital) Reporting

Poland SAF-T

‘Clearance’ e-invoicing and E-Assessment

UK MTD

Hungary

Spain SII

ERP Impact

Continuous Transaction Controls

Continuous Transaction Controls – basics

Emerging CTC flavours

CLEARANCE

PUBLIC

PROCUREMENT

NATIONAL E-INVOICING

FRAMEWORK

CONTINUOUS

REPORTING

‘OWN THE

NETWORK’

Europe

Asia

SouthAmerica

North America

CTCs going East

Public procurement

objectives such as EU

regional integration have

driven PEPPOL as an

interoperability approach.

Semi-closed ‘business

networks’ and open

network approaches will

coexist for the coming 5-

10 years.

CTCs going East – Supply Chain impact?

supplier buyer

CTC

platform

Business transaction

Classic CTC model

supplier buyerCTC

platform

Emerging ‘own the network’ CTC model

(Turkey, Italy, Russia…plans in Saudi Arabia, Jordan)

BUSINESS IMPACT‘COMPLIANCE’ EVIDENCEATTITUDE

FINANCIAL IMPACTSUPPLY CHAIN

INTERRUPTIONSERRORS

TAX ADMINISTRATION AUDITS YOU

YOU ‘AUDIT’ THE TAX ADMINISTRATION

ACCOUNTABILITY

ADMINISTRATIVE FINES

FELONY -TAX EVASION

NONCOMPLIANCE

DECENTRALIZING OK

DECENTRALIZING RUINOUS

STRUCTURE

SOLUTION IMPACT

FREQUENCYPERIODIC CONTINUOUS

MANUAL AUTOMATEDMETHOD

ERP CENTRICTRANSACTION

CENTRICSYSTEM

TAX DEPARTMENT IT DEPARTMENTORGANIZATIONAL DRIVER

MONOLYTHIC APPLICATION

FLEXIBLE INTEGRATION

SOLUTION

© 2017 Sovos Compliance, LLC

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Traditional TAX FORMFILING

Paradigm Shift DIGITAL TAXREPORTING

TransformativeE-INVOICING COMPLIANCE

Highlights EU & Asia CTC developments

INDIA

GREECE

HUNGARY

FRANCE

TURKEY

ITALY

SPAIN

HUNGARY

E-Invoice GIB (TRA) exclusive transfer hub of B2B tax invoices

E-Ledger

E-Delivery Note

E-Archive (B2C reporting)

TURKEY

From 1 April 2020, starting with largest companiesReal-time clearance granted via Invoice Registration Number (IRP)

No impact (yet) on existing invoiceprocesses except adding IRN/QR CodeExisting optional (‘post audit’) electronic invoicing unchanged

INDIA

Has mandated real-time reporting (no invoice clearance) for suppliers since 2018From July 2020 all invoices affected

Expected in coming years to repurpose existing reporting platform to become invoice exchangeplatform

HUNGARY

Current implementation deadline 1 April 2020

Submission of invoice data via reports or real-time

Buyer must complete with accounting data not received from suppliers

Online myDATA books must be kept consistent with taxpayer’s

GREECE

Will mandate e-invoicing with real-time controls starting 2023

Considering different paths

Like Italy, existing mandatory B2G infrastructure will play a role

Final model may be inspired by Italy, Turkey and PEPPOL

FRANCE

ReadinessAssessmentFramework

2

CONTINUOUS

TRANSACTION

CONTROLS

E-Invoicing

Periodic

Reporting

POST

AUDIT

Indiaunique

referenceinvoicing

Post Audit e-Invoicing

Clearance E-Invoicing

(LATAM, Italy,

Turkey)

HungaryReal-Time Reporting

Turkey E-Ledger

Mexico E-Accounting

Norway, Poland,

France and other SAF-TUK MTD

How can you survive the CTC chaos?

Purchasing Financial Core Selling

Tax Today: Manual & Local Point Solutions

Control challenges created by legacycompliance approaches are compounded by business & IT trends:

• Cloud-enabled, faster ERP versions e.g. SAP S/4

• Move legacy tax customizations, add-ons and configurations to new ERP?

• Adoption of procurement and order-to-cash cloud platforms

• Transactional tax compliance in hands of third party vendor(s)

• Establishment of Shared Service Centres

• Need ability to centralize & automateMultiple software and service vendors with varying contracts, SLAs,

insurance, liability, certification, security & privacy

REGULATORY CHANGE

ACCELERATES

Adopt a modern,

global strategy

Support digital

transformation

Pressure to use disparate

local solutions

Reverse digital

transformation

TAX ADMINISRATIONS

ERP & otherback-end systems

Own ARtransactionalsystems

Buyers’ AP transactionalsystems

Own APtransactionalsystems

Suppliers’ AR transactionalsystems

DirectSuppliers

IndirectSuppliers

SmallCustomers

LargeCustomers

TAX ADMINISRATIONS






1

DirectSuppliers

IndirectSuppliers

SmallCustomers

LargeCustomers

Brownfield

Move across all the configurations and

customizations aimed at decentralized ‘compliance’

in the pre-CTC world:

• Substandard quality & controls

• No ability to evolve to transactional compliance

Greenfield

TAX ADMINISRATIONS






Local andFunctional

vendors

2

DirectSuppliers

IndirectSuppliers

SmallCustomers

LargeCustomers

Choose the software (SaaS)

vendors that best support

your business

Ensure consistency of

compliance approach,

auditability and control

For clearance e-invoicing and

other 100% transactional

CTCs, companies must often

rely on external AP and AR

vendors meeting and

upholding requirements.

How do you know your

selected procurement, EDI,

order-to-cash, AP

automation, T&E, CCM, e-

commerce marketplace,

EIPP etc vendors can

maintain compliance over

time?

TAX ADMINISRATIONS






Local andFunctional

vendors

3

DirectSuppliers

IndirectSuppliers

SmallCustomers

LargeCustomers

Diverse AP Systems & processes

Supplier onboarding, ordermanagement, catalogue,

spend management, interop

Business Networks

AP automation

T&E

Middleware

EDI/IB

EIN/P2P/Supplier portal

Clearance, B2B2G

SUPPLIER(S)

Scan OCR

Map

Invoice approvalworkflow

Two orthree-waymatching

Errormgmnt

Pay

Dynamicdiscouning

etc

Global XML

Structured mandatory XML schema

Post Audit EDI

Intra-group

E-Receipts/tickets

Paper/PDF B2C receipts

PDF PA B2B

Paper B2B

Book

ORDER, GRN / DELIVERY NOTE

BUYER

Post-Audit and Common AP Indirect Tax Requirement Types

20+ indirect tax requirement categories

each different per country

Clearance Country AP Indirect Tax Requirement Types

BUYER

Supplier onboarding, ordermanagement, catalogue,

spend management, interop

Business Networks

AP automation

T&E

Middleware

EDI/IB

EIN/P2P/Supplier portal

Clearance, B2B2G

SUPPLIER(S)

Scan OCR

Map

Invoice approvalworkflow

Two orthree-waymatching

Errormgmnt

Pay

Dynamicdiscouning

etc

Post-Audit and Common AP Indirect Tax Requirement Types Clearance Country AP Indirect Tax Requirement Types

Global XML

Structured mandatory XML schema

Post Audit EDI

Intra-group

E-Receipts/tickets

Paper/PDF B2C receipts

PDF PA B2B

Paper B2B

Book

ORDER, GRN / DELIVERY NOTE

TAX ADMINISRATIONS






4

DirectSuppliers

IndirectSuppliers

SmallCustomers

LargeCustomers

Avoid disruption of

compliance processes that

are imperfect but get the job

done

Secure cost-effective

readiness for diverse CTCs

TAX ADMINISRATIONS






DirectSuppliers

IndirectSuppliers

5 5

SmallCustomers

LargeCustomers

TAX ADMINISRATIONS






6

DirectSuppliers

IndirectSuppliers

SmallCustomers

LargeCustomers

Your intercompany invoices

are fine where they are –

you don’t want to mess with

potential critical BEPS

evidence

Ready your systems and

processes for a world of

CTCs

TAX ADMINISRATIONS






7DirectSuppliers

IndirectSuppliers

SmallCustomers

LargeCustomers

Archiving: from must-do to must-have

Ability to reconcile & defend becomes business-critical

Compliance Survival

Maintain flexibility to store

tax originals in disparate

solutions


compliance approach,

auditability and control

TAX ADMINISRATIONS






8

DirectSuppliers

IndirectSuppliers

SmallCustomers

LargeCustomers

Tax determination:

from hygiene factor to operational necessity

Good to have Survival

Ensure tax decisions are

right from the source, not ex

post


approach across disparate

environments and trading

partners

TAX ADMINISRATIONS

Erp & otherback-end systems





Local andFunctional

vendors

DirectSuppliers

Local andFunctional

vendors

IndirectSuppliers

1

6

8

7

3

5 5

SmallCustomers

LargeCustomers

2

4

Questions?

Next From sharedserviceslink

www.sharespace.digital

January 23rdJanuary 16th January 30th

Presenters€¦ · Sovos Sarah Fane Head of Research sharedserviceslink ... Spain SII ERP Impact...

Documents

Transcript of Presenters€¦ · Sovos Sarah Fane Head of Research sharedserviceslink ... Spain SII ERP Impact...