- SAP is expected to end support for its previous generation ERP solution, ECC, by the end of 2027.
- Many companies are migrating to SAP S/4HANA and are faced with the decision of whether to use a brownfield or greenfield approach.
- Tax compliance is a critical factor in this decision, as governments around the world are advancing in the digital transformation of tax collection.
- Continuous transaction controls, such as e-invoicing and real-time reporting, require companies to share information about their business transactions with authorities in real time. Non-compliance can result in penalties.
- Tax compliance is evolving from an ERP-centric accounting process to an operational issue, and tax determination processes must evolve accordingly.
- Third-party service providers are responsible for ensuring transaction tax compliance.
- Decentralized VAT compliance assurance is counterproductive in the world of mandatory e-invoicing and continuous compliance. Bringing existing indirect tax compliance customizations to SAP S/4HANA can be strategically dangerous and financially detrimental.
Source it-daily
