Knowledge sharing

Tuesday, July 25, 2017

Being ready for GCC VAT introduction when operating SAP

The Governments of the Gulf Cooperation Council (GCC) - Bahrain, Kuwait, Oman, Qatar (status unknown due to GCC politics/friction), Saudi Arabia and the United Arab Emirates that make up GCC - are committed to form a common framework for the introduction of value added tax (VAT) in the region. In order to achieve conformity within the GCC, it is anticipated that the six member states will all aim for implementation of VAT during the period commencing 1 January 2018 or by the end of 2018.

VAT as a process will affect many aspects of businesses operating in the GCC and will require significant time to plan, and integrate into existing processes.

Setting the objectives
  • To be ready in time and a need of an effective and efficient work process between Tax function, IT function and its third party consultants
  • To optimize its VAT deduction and to automate this VAT process as much as possible in SAP
  • To limit VAT risks and meet VAT reporting obligations (e.g. reverse charge mechanism to avoid non VAT compliance)
  • To automate VAT processes via enhancing the SAP 'as is' functionality where possible
  • Set up processes and controls when VAT automation is not feasible
  • To test new SAP functionality prior to go-live (sandbox)
Based on above objectives the PDF document 'More detailed description of Work in booklet' established the scope, schedule and means of initiating the work to be performed by the service provider and describes or references the specifications, instructions, standards, and other documents, which the service provider shall satisfy or adhere to in the performance of the work
The KEY Group is supporting one of the largest multinationals with the setup of the GCC VAT rules in SAP itself
Read more: Being ready for GCC VAT introduction when operating SAP


Saturday, July 8, 2017

SII VAT filing submission: we successfully met first submission deadline

Istanbul, Turkey and Amsterdam, the Netherlands — SNI and Key Group announce for 50 multinationals a successful Spanish SII filing

The Spanish SII filing, a new requirement introduced by the Spanish government, requires taxpayers to submit VAT relevant transactional data of their Accounts Payable (AP) and Accounts Receivable (AR) records in a specific XML format close to real-time to the Spanish tax authorities (AEAT). To support these new regulations our clients have implemented our SAP add-on for Spain. 

That is a SAP integrated solution for Spain with a cockpit to select reportable outgoing and incoming invoices, create periodic SII files (envelopes), E-submission of SII XML files and control reports. The creation and submission of the SII reports could be fully automated in SAP Batch jobs. It is however also possible to do some SII reports (for example the sales invoices) fully automated and other SII reports (for example the incoming invoices) manually.


All flags are on green

We are pleased to announce that our first actual SII VAT filing submission were completed successfully prior to first submission deadline.

Tuesday, May 2, 2017

SNI Zugferd SAP add-on: enables electronic invoice exchange in SAP itself

SNI SAP-ZUGFERD is a SAP certified SAP add-on enabling electronic invoice exchange including structured data in an efficient way. 

ZUGFeRD is an abbreviate for »Zentraler User Guide des Forum elektronische Rechnung Deutschland«. It is a new invoicing standard that will play a major role in efficient and effective electronic invoicing. ZUGFeRD invoices carry both a human-readable representation (rendering) of the invoice as well as a structured machine-readable XML representation.

The objective of ZUGFeRD is to enable electronic invoice exchange including structured data in the public and private sectors. The goal of ZUGFeRD is to enable electronic invoice exchange including structured data in the public and private sectors:


  • ZUGFeRD invoices carry both a human-readable representation (rendering) of the invoice as well as a structured machine-readable XML representation
  • The human-readable rendering is encoded as one or more PDF pages according to the PDF/A (standard)

What is the new innovative way

For companies that run SAP we have developed a SAP add-on solution by which e-invoicing requirements can be met in efficient and effective and automated fashion in SAP itself.




PowerPoint for complete overview of the product


Saturday, April 22, 2017

More attention for Transfer Pricing

Many countries nowadays implement the BEPS recommendations such as the ‘master’ and ‘local’ file and the ‘Country-by-Country’ report. In general, this not only leads to an aggravation of Transfer Pricing (hereafter: TP) compliance activities, but also results in the potential discovery of errors that were previously undetectable. Indeed, TP processes are generally not (yet) automated and analysis activities regarding TP are primarily executed manually.
This situation makes it challenging to have all relevant tax data provided in time. This applies to both the collection of the required source data, as well as the TP analysis itself. Often, the supplied formats and templates are unusable or have to be ‘manually’ modified in Excel in order to be used.

The current trend is that increasingly more detailed information is necessary for specific products or services; ranging from who the order was placed by to details about the applied margins for service – and goods transactions and the conditions under which these took place. Timely access to such source data has thus become even more important.

This is also the ‘overlap’ with data required for the indirect tax function. Cross-border intercompany transactions form a risk area that will be included in the VAT risk matrix – risks that exceed the risk appetite – by every multinational and that requires efficient monitoring and checks.
  1. Introduction: Relevant tax data from Transfer Pricing and VAT: explaining the ‘Why’, ‘What’ and ‘How’
  2. The auditor is not (yet) a risk analyst
  3. New tax legislation in the UK: 'Tone at the top'
  4. More attention on Transfer Pricing
Above is a translation of article published in Vakblad Tax Assurance. Dutch version can be downloaded for free: Download click the link