Indirect Tax Solutions for Europe

European businesses are continuously challenged to stay compliant for VAT. Our solutions work to reduce risk and support compliance in the end-to-end VAT process.

Migrating to SAP S/4HANA: Considerations for Your VAT Solution

If you are implementing or migrating to SAP S/4HANA: are you ready for the future?

The move to SAP S/4HANA is the perfect opportunity for tax to finally regain control and transform and automate the indirect tax operations by implementing a tax engine. But, to gain the full benefits of SAP S/4HANA, change is required for your set-up and for the way you used SAP before.

Does your VAT solution still fit, or do you need to re-build this? If you rebuild, do you have your original team of SAP specialists or does this mean explaining all rules again? We answer some of the important questions around this topic.

Why can't VAT be handled in SAP?

There are key reasons why value added tax cannot be handled properly in SAP alone:

  • Generic VAT solutions within SAP are not sustainable 
  • SAP does not have 1 standard solution to serve all possible permutations
  • Each customer’s SAP system, set-up, and business scenarios are unique
  • No generic third-party VAT solution within SAP can be sustained for multiple customers
  • Each customer has a unique version of the VAT solution, so maintenance and coding are incredibly complex

What are the considerations when moving to SAP S/4HANA?

You may start to uncover extra steps and costs that were not apparent at the beginning. Here are some hidden costs and things to consider in addition to the SAP implementation costs:

  • VAT determination when using multiple financial platforms such as SAP Ariba, Coupa, e-commerce systems, SAP Concur, etc. – given that each will have its own VAT logic
  • Acquiring multiple ERPs from M & A – these systems will have their own VAT logic
  • Building VAT solutions in each system increases risk of non-compliance
  • Maintaining each system can be time consuming, resource intensive, and expensive

What if you are still using SAP ECC?

You can leverage Vertex to improve VAT determination today and streamline your migration to SAP S/4HANA in the future.

  • Vertex has enabled the SAP API connection between SAP ECC and the SAP localisation hub
  • You can get the benefits of a Vertex tax engine by connecting your SAP system using a trustworthy connector
  • There is no need to redesign your VAT processes when you migrate as the work will have been already done upfront

Why You Need the Vertex Tax Engine

The Vertex tax engine connects to almost any platform that generates a VAT relevant transaction. It connects multiple ERPs and financial systems for consistency in VAT determination across your business.

Benefits of the Vertex Tax Engine

  • Improved accuracy of VAT/GST determination
  • Up to date tax content
  • Reduced IT support needs
  • Improved tax department efficiency
  • Improved audit performance
  • Improved scalability

By using Vertex, you can automate your tax solution to manage the complexity of VAT across Europe and confidently manage compliance as your business grows and jurisdiction requirements change. This enables you to be ready for the future.

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