You can get used to anything, but is it really the best solution?
When closing a period, the VAT process is the final step, which means it’s performed under the greatest time pressure. Especially when not enough allowance was made during the implementation of Oracle EBS for meeting fiscal reporting requirements. You only have a short period of time in which to produce your VAT declaration. Many organisations even have to file multiple declarations.
The standard reports in Oracle EBS are inadequate for VAT summary statements and reconciliation with the GL. It also takes a lot of time to run these reports. In the end, the declaration is compiled using Excel.
What are the risks of working in this way?
- Manually transferring and typing data into spreadsheets.
- Incomplete data processing documentation.
- Do your spreadsheets show the complete picture?
- Underdeclaring can lead to mounting fines.
- Or you might miss out on a refund…
How are you adapting to the new VAT requirements?
More and more countries are imposing requirements on organisations to provide audit files (SAF-T, Standard Audit Files for Tax purposes). These files contain different types of financial transactions and must be submitted in a country-specific format.
Keeping up to date and meeting the new requirements is a challenge. What’s more, the tax authorities are enforcing increasingly stringent rules; non-compliance can be a serious problem.
Here’s an example: from 1 July 2017, companies in Spain have to submit their audit files via SAF-T integration within 8 days of the transaction. Of course, the audit files have to match both the declaration and the Intrastat report. Without itax4apps, that would be a considerable challenge…