Product
ITL Suite
Deloitte’s Indirect Tax Logic (ITL) is a suite of SAP add-ons that offers a powerful governance & control framework compatible with the latest SAP versions. ITL Suite will support you in your journey in meeting the digitization requirements of tax authorities worldwide.
Why ITL Suite?
Anticipate changes quickly
Respond rapidly to changing circumstances with configurable SAP certified add-ons to your SAP environments.
Full transparency
Capture and view what is truly happening within your business and across your supply chain.
Governance and Control
Real-time checks from initiating documents of chain transactions assess whether they are desirable and permitted. The ITL framework ensures that all input and output legs of every chain transaction are aligned.
ITL Suite add-ons
Excise Tax
Manage and automate the entire excise tax process. Excise taxes must be settled for a number of consumer goods and services. The ITL Excise Tax (ITL-ETX) add-on supports the processes around excisable goods, such as excise tax determination and calculation, including charging and accruing. The add-on also offers SEED number validation, EMCS integration and the necessary operational and compliance reports.
Tax Supply Chain Control
Governance and control across your supply chains. The Tax Supply Chain Control framework (ITL-TSC) assesses chain transactions from within the initiating purchase and sales orders. It determines whether the chain transaction is permitted/desirable and creates a single source of truth for the entire chain transaction. All documents within the chain transaction refer to this single source to ensure that all input and output documents are aligned with each other.
Indirect Tax
Accurate and effective indirect tax determination. Based on parameters set by the ITL-TSC framework, the Indirect Tax Determination framework (ITL-ITX) accurately and effectively determines the tax treatment for all input and output documents within chain transactions. If desired, it can also be replaced by calling to an external tax engine. Users can continue to benefit from the governance and control feature of the ITL-TSC framework by offering aligned parameters set by the framework to the external tax engine.
Dynamic Tax Codes
Tackle changing tax rates using validity periods. The Dynamic Tax Code (ITL-DTC) add-on allows for the addition of validity periods to the tax rates of tax codes. Accordingly, you can continue to use the same tax code even in the event of a newly implemented tax rate change. All that is necessary is to simply replace the tax rate with a new validity period.
Tax Number Validation
Real-time validation of VAT registration numbers. In the EU, businesses are required to check whether the VAT registration numbers used in their customer invoices, as well as those that their vendors use, are correct and valid. The ITL VAT Number Validation (ITL-TNV ) add-on carries out this check automatically on master data and real time on transactional data. Relevant European rules are applied, thus providing full audit trail evidence that the checks were performed.
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What is ITL Suite?
Additional information
“Real-time operations are increasingly becoming the standard. Tax must be ‘first-time-right’; in this day and age, mistakes simply aren’t acceptable.”
Business value, scalability and flexibility
When it comes to indirect tax solutions, CFOs welcome those that are able to respond quickly to changing business realities. Furthermore, scalability is becoming a key requirement. The foundations for further development and growth must first be laid internally. In other words, business processes and systems must be configured properly. However, firms will also have other short-term and long-term ambitions. A good indirect tax solution should therefore already be prepared for future developments regarding, for example, sustainability or industrial standards.
The complexity of VAT
Multinationals must determine and declare the VAT due in each country of operation, which is highly complex. VAT is interwoven with everything: purchasing, sales, inventory, finance and invoicing. Everything related to VAT affects multinationals at the heart of their business. Those seeking to improve VAT transactions must understand how a multinational company makes money, and how the company's logistics processes work. VAT systems implementation is a task for skilled specialists, particularly as such systems must also meet requirements defined by the tax authorities.
Standard solutions fall short
Many companies rely on SAP to determine and calculate the right taxes on their transactions, and to include these in their tax returns. In SAP, a tax code is added to a transaction. This indicates the VAT percentage in a particular country, and thus how much VAT is added to the invoice. However, SAP has a limited decision model for indirect tax determination. This causes problems for organisations that operate in supply chains involving multiple parties.
Standard SAP simply does not have the ability to look across a chain transaction and base its decision on all relevant tax drivers of all legs in the chain. In practice, this often leads to unmanageable work-arounds in IT systems, and to more complex and labour-intensive processes.
ITL offers a smart way to enhance the standard SAP solution with SAP-certified add-ons.
How do you get VAT first-time right?
VAT processing has changed as more and more activities take place in real time. Currently, many organizations work with e-invoicing, whereby digital integration with tax authorities already takes place during the month. In some countries, every outgoing invoice (and the corresponding VAT) is reported to the tax authorities immediately. This means there is no longer an opportunity to make corrections at the end of the month. Our ITL Suite solution helps ensure every VAT calculation is first-time-right.
Real time will be the standard
The technical landscape has become more sophisticated with real-time operation tracking as the norm. Tax must be first-time-right as mistakes simply are not acceptable. Furthermore, tax authorities are increasingly linked directly to businesses. In some countries, invoices must first go to the tax authorities for verification before being sent to the customer. However, in other countries, matters are not yet so advanced, meaning that multinationals also have to work at different speeds.
Extracting valuable management information
Correct configuration of the tax process also provides valuable management information, which would otherwise not be available. This not only benefits tax and finance departments, but can also be invaluable to the Executive Board. Indirect tax has become important to all areas and operations within businesses.
ITL Suite in action
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