Poland – create automatically the VAT SmartPdf file from SAP

Companies selling across European Union borders have to submit EC Sales List (ESL). This should contain the details of sales or transfers of goods and services to other VAT registered companies in other EU countries summarized per VAT registration number. The tax authorities in the EU use the listings to check whether VAT is declared by the parties involved in cross-border transactions (e.g. no mismatches).

In Poland a specific extra local requirement applies. From 1 January 2017 taxpayers making transactions with EU members will be required to submit mandatory the declaration only in electronic form. The aimed is earlier identification of possible abuse. The summarized amount per VAT registration number for the sales of goods, acquisition of good and services need to be reported separately to the authorities in PDF.

The PL Tax Authorities provides a VAT Smartform Pdf that a company has to fill in with the requested information. That Smartform has to be mandatory used to meet the requirement and without support the data has to be entered manually by the company.

Entering data is a time consuming process. Besides the impact on internal resources, such manual activity increases the risk of data errors, i.e. with entering the VAT registration numbers in the Smartform Pdf.

Stricter penalties apply for individuals involved in tax fraud and penalties are introduced for taxpayers who do meet the legal requirement of submitting declarations in electronic format.

We offer a new SAP add-on solution that creates automatically the VAT SmartPdf file from SAP. When our SAF-T SAP add-on solution has been purchased this additional functionality will be managed under SAF-T cockpit as a different report.

Source: SAP – submitting close to real time data to tax authorities

Spain – submitting close to real time data to tax authorities

In Spain a new VAT reporting system “Suministro Inmediato de Información” (SII) will enter into force on the 1st of July 2017 that will impact approximately 62,000 companies. These companies have to submit electronically to the Spanish tax authorities data from all AP and AR invoices within 4 days after an invoice is either issued or booked. In the first 6 months – as a transitional period – the companies will have 4 extra days (8 days in total) to submit these invoices.

Automated extraction of the invoice data will be essential to meet the new rules in an automated fashion. The required invoice data has to be transformed in the required SII format (XML) and due to the short deadlines for submitting the report it is preferred to do it in the source system where the invoices are captured. For most companies the required data are already available in the SAP system. When e-submission of invoice data is implemented the administrative burden will also be lowered as only certain tax self-assessments has to be filed and certain cumbersome declarations no longer need to be submitted.

Businesses classified as large companies will have just over 6 months to adopt this new requirement in its processes, controls and systems. It will be a real challenge. Failure to comply in time could result in penalties and increased risk of a tax audit.

We developed a SAP add-on solution by which the e-submission of the required data from AR and AP invoices is fully integrated in SAP without an external interface or use of external software. With this add-on the submission of the requested invoices can be done automatically and in time.

Source: SAP – submitting close to real time data to tax authorities

UAE firms face hiring crunch as VAT implementation nears

phenixtax

Dubai: With the forthcoming implementation of value-added tax (VAT) in the UAE and across the region, companies are going to face a huge talent crunch next year, according to recruitment specialists.Businesses in the UAE are gearing up for the collection of VAT in 2018. It was earlier forecast that the next tax policy will generate thousands of new vacancies for finance professionals. Source: UAE firms face hiring crunch as VAT implementation nears | GulfNews.com

According to surveys not many businesses have an adequate accounting systems to deal with VAT. Besides that lots of businesses lack the VAT knowledge of how a VAT works. Investments and training are needed to be ready in time.

To get VAT ready the following actions should be considered.

  1. Assess the business impacts
  2. Amend IT systems and business processes to the new situation forecasted and
  3. Review existing contracts and set rules for new contracts

How to get VAT ready in time

Modernising VAT for cross border e-Commerce

The European Commission released legislative proposals to remove VAT obstacles for e-commerce to realize fair competition between traditional business and e-commerce.

The Commission has proposed practical new measures to support the digital economy when it comes to VAT compliance, which can currently place heavy burdens on small companies operating online.

The new rules should help to accelerate growth for online businesses, in particular startups and SMEs.

Proposals include:

  • New rules allowing companies that sell goods online to take care of all their VAT obligations in the EU through a digital online portal (‘One Stop Shop’), hosted by their own tax administration and in their own language. These rules already exist for online sellers of electronic services (‘e-services’);
  • To support startups and micro-businesses, the introduction of a yearly VAT threshold of €10 000 under which cross-border sales for online companies are treated as domestic sales, with VAT paid to their own tax administration. This goes hand in hand with other initiatives such as same invoicing and record keeping rules. Our aim is to make trading in the single market as similar as possible to trading at home for these companies;
  • The removal of the current exemption from VAT for imports of small consignments from outside the EU, which leads to unfair competition and distortion for EU companies;
  • A change to existing VAT rules to enable Member States to apply the same VAT rate to e-publications like e-books and online newspapers, as they apply to their printed equivalents.

These new rules will have a major effect for companies selling goods and services online that will now be able to benefit from fairer rules, lower compliance costs and reduced administrative burdens.

Member States and citizens will benefit from additional VAT revenues of €7 billion annually and a more competitive market in the EU.

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Accenture: Belastingdienst ‘Innovator of the Year’

Chief analytics officer Cyprian Smits van de Belastingdienst is door Accenture uitgeroepen tot ‘Innovator of the Year’. De uitvoeringsorganisatie krijgt de prijs voor de ontwikkeling van tools die het makkelijker maken om in contact te staan met gebruikers.

Source: Corporate nieuws details – TaxLive

UAE implementing VAT in 2018

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The United Arab Emirates (UAE) has proposed implementing Value Added Tax from 1 January 2018. A new tax office, the Federal Tax Authority, has been established by Federal Law 13 of 24 October 2016. This body will be responsible for the role out of VAT, and local laws on other taxes, too. It will manage the VAT registration and returns processes. Aside from launching the new consumption tax, the new Authority will co-ordinate VAT harmonization amongst the other Gulf states in the GCC single market. Source: UAE VAT 2018

According to surveys not many businesses have an adequate accounting systems to deal with VAT. Besides that lots of businesses lack the VAT knowledge of how a VAT works. Investments and training are needed to be ready in time.

To get VAT ready the following actions should be considered.

  1. Assess the business impacts
  2. Amend IT systems and business processes to the new situation forecasted and
  3. Review existing contracts and set rules for new contracts

How to get VAT ready in time

Norway introduces SAF-T to improve tax inspections

Norway is introducing SAF-T reporting for corporate entities, either resident or with physical presence in Norway (VAT registered businesses). From 1st January 2017 onwards it is required to provide SAFT-NO files in XML format on request of the Norwegian Tax authorities.

Tax authorities, due to technological innovations, have become increasingly better in executing their tax audit. The probability that the Tax Authorities will issue additional assessments and penalties in the near future because errors in indirect tax are detected, increases by the day. The SAF-T standard, originally created by the OECD, is intended to give tax authorities easy access to the relevant data in an easily readable format.

This leads to much more efficient and effective tax inspections.

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A scalable SAP solution for countries implementing SAF-T

The SAP add-on is extendable to countries that uses the OECD framework as the basis for SAF-T reports. Note that countries might have their own specific local requirements but in case the basic required data are covered in the OECD framework it could be managed with country specific variants.

You can compare it with the EU VAT requirements: EU Directive as framework with some country specific rules based on the options in the EU Directive.

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Integrated SAP add-on solution for SAF-T

Besides recently Poland, SAF-T is introduced now also for Lithuania and Norway. A fully integrated solution in SAP without an external interface or use of external software is available for Lithuania, Poland and Norway. Other countries will follow.

This integrated SAP solution is developed together with a certified Global SAP Application Partner.

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SAP add-on for SAF-T Poland

In Europe SAF-T is now in force in Austria, France, Lithuania, Luxembourg and Poland. Germany, UK, Ireland, Norway and the Czech Republic are most likely next to introduce SAF-T. Lithuania is expanding its SAF-T.

Starting October 1, 2016 all VAT-registered taxable persons, – including foreign companies registered for VAT – will be required to submit a SAF-T file in XML format to the LT Tax authorities on a monthly basis.


SAF-T SAP solution: fully integrated in SAP


We now offer a SAP add-on solution for SAF-T Poland (ABAP) at a fixed all inclusive fee. It is fully integrated in SAP without an external interface or use of external software. All inclusive means implementation, training and 1 year of free support and maintenance for bug-fixes & legal updates.

Our IT solution can be reused for other countries.


SAF-T Poland


Besides the monthly SAF-T VAT file in Poland, companies have to be able to meet the SAF-T obligation ‘on request’ containing different legal requirements. This submission applies in case of a preliminary tax inquiry, a tax audit and tax proceedings where the SAF-T file should be provided to the PL tax authorities in a short timeframe.  To avoid disputes and or penalties it is therefore important that a company is ready.


To establish synergies we have setup a joint venture initiative with a global development partner of SAP and leading software company in the area of e-invoice, e-bookkeeping, e-archive, e-ticket and such SAP add-ons in Poland. This company provides SAP certified add-ons for legal compliance to a large number of global well-known companies.

  • Runs over SAP
  • User friendly with single user interface (SAP)
  • Easy to install by external SAP transport
  • Easy to maintain by upgrades via transport files
  • Has its own global SAP namespace so there is no effect on SAP standards and is not affected by SAP upgrades
  • Standard SAP authorizations used
  • Open source code as ABAP programming language
  • Vendor independent
  • One year free maintenance service including bug-fixes & upgrades according to legal compliance

Last Thursday – 25 August 2016 – was the deadline of the monthly VAT SAF-T PL submission.

Our generated SAF-T VAT file reconciles with the numbers of the Polish VAT return and have also been checked with the official tool of the Ministry of Finance.


Contact us for more information