Whether it is VAT, GST, Sales, Use, Consumption, Environmental or Business, all are forms of indirect tax and make up about 75% of all taxes remitted by businesses globally. The burden of compliance and the initial collection falls on the companies making the transactions. Failing to meet this burden can lead to penalties, huge fines and in some cases imprisonment.
In Europe alone, across its 27 countries, the VAT gap is estimated to be as much as $100billion! The risk of non-compliance and inefficiencies in the tax solution adopted by companies often results in increased time and resource managing the complexities, not only with the existing tax requirements, but also ensuring future changes to regulation are incorporated.
A poorly designed indirect tax solution will only increase the pressures on meeting compliance and avoiding costly audits.
At eBiz Answers, we understand these requirements and work closely with our customers to ensure that not only are your existing indirect tax needs met, we also provide a structure to allow for the easy adoption of any changes, be they driven from the business or due to statutory requirements.
By its very definition, the word ‘consultation’ means to provide expert or professional advice and that is exactly what eBiz Answers provides in the areas of ‘Oracle eBusiness Tax’ (eTax). We provide an unparalleled service when it comes to Oracle Financials eTax integration, understanding the limits of the eTax module but more importantly, when those limits are reached, we know how to work around the issue with proven solutions so we can always meet your needs.
eBiz Answers will work directly with the end client or in most cases, with an integration partner. On most projects, the tax is set up by an Oracle Financials consultant who, if you’re lucky, has done a couple of implementations before. But in most cases, the tax setup is seen as a part time task by the financials consultant. eBiz Answers brings years of experience in setting up tax across the world and having developed a ‘best practice’ approach can come to the project with an existing solution out of the box, often meeting 80 to 100% of your client’s needs. We then have the expertise to meet the remaining requirements, using our knowledge base and experience to provide the best, fully automated and user friendly solution in the quickest time but most importantly, a solution that works.
Because eBiz Answers follows a ‘best practice’ approach to the setup of our tax solutions,
- Consistency in naming conventions across the entire tax solution so the Germany setup will look the same as the Spanish, Japanese or Mexican solution.
- Fully automated for AR and intercompany transactions, while utilising a efficient and user friendly override function, yet fully automated for AP.
- Take the responsibility away of choosing the tax rate to be used from what is often a user who is unqualified to determine the correct tax. Instead we only allow the user to choose the correct parameter that will lead to the correct tax being calculated.
- We never default tax codes from Suppliers or customers. This is 11i technology and prevents the correct tax being calculated correctly every time.
- Our ‘Regime to Rate’ set up follows a proven structure and easy to understand naming convention.
- We ensure that that the tax is set up to meet the 80% global solution but keep the organisation specific tax requirements contained only to that organisation.
- “Tax is tax”, there is only one answer to any outcome. We provide the parameters to ensure the right tax is chosen every time.
- It is a mistake to think that the EU is harmonised when it comes to VAT setup. Whilst there are many similarities, it is the understanding of the differences that make the difference.
- We try and put more detail in tax rates so this is reflected in the tax reports making submissions and reconciliation a simple process for any country.
- We don’t offer tax advice but we will point out if we believe a process is being done wrong. The tax rules and therefore the risk of non-compliance will come from the client who will have confirmed them with their tax lawyers.
Benefit to using us
When eBiz Answers is on site, we instil confidence with the end client, we demonstrate our knowledge and in most cases already have the solutions to their issues. We have an excellent understanding of indirect tax requirements globally which allows us to guide the end client but we never tell the client how things should be – we always refer them to their tax lawyers. This way, the Solution is theirs; we just ensure it works without there being the risk.
By using eBiz Answers, you can bring us in at the beginning to ensure your solution design will accommodate the abilities of the tax engine before it is too late. We bring a proven tax setup solution that can be up and running ready for testing and demonstration in a couple of weeks and we already have solutions to most of the issues that you may face when the functionality of the Oracle eTax engine does not meet the requirements. We also provide the flexibility that cannot be given by an individual because we can either commit a full time resource to the project or break up the time needed, jumping in and out of the project as and when needed. This allows you to have a dedicated tax expert on the team without having to pay a full time rate.
Whilst we ensure that the indirect tax solution that you have is as robust and as future proof as possible, there are always times when changes will be needed. These could be simple rate changes, complex rules due to new legislation or monitoring errors related to taxes due to bugs in the system. Whatever the requirement, eBiz Answers can offer support, often bringing a solution before you even know about the problem!
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