Technologies & process management 

Managing indirect taxes is ever more challenging, driven in part by the increased focus of the national tax authorities and also the increasing regulatory burden placed on organizations by governance regulations. By effectively harnessing the developments in technology, you can help reduce VAT/GST compliance risks and streamline the VAT/GST accounting process, leaving you free to provide value added support to the business.

Our bespoke approach combines our firms’ systems and process experience to help ensure that the various issues are identified and addressed, the appropriate tasks are automated and the common pitfalls avoided. We focus on working with our firms’ clients to help them gain efficiencies and greater control of the VAT/GST in their business through the effective use of technologies and process management.

Technologies & process management wheel:

VAT/GST Systems Functionality
In today’s business environment many organizations are under pressure to reduce costs, streamline processes, automate activities and operate higher levels of internal control. However, it is essential that the core financial systems not only meet the operational and business requirements within your organization, but that they also efficiently and effectively meet the VAT/GST and statistical filing obligations in terms of reporting to the authorities. Critically, they must also be capable of automating many internal controls to mitigate VAT/GST risk.
How KPMG can help:
Working in conjunction with existing implementation teams and in partnership with business stakeholders, we can provide business process assessments, scoping and configuration specifications for new and existing tax system implementations. This approach aims to give you the confidence that your system has been tax sensitized and that your organization has taken full advantage of the opportunities offered by the adopted system.


Data Analysis:
One of the major challenges facing VAT/GST professionals when preparing VAT/GST returns and managing compliance is the integrity of the underlying data that they rely on. If the underlying numbers used to roll up into the final balances are incorrect it could invalidate your VAT/GST return, exposing the business to penalties and reputational damage with the tax authorities.
How KPMG can help:
KPMG’s Global Indirect Tax Practice can offer a service for analyzing the integrity of the data, using sophisticated interrogation and analytic tools, focusing on the way in which VAT/GST critical data is captured and flows through to the VAT/GST return. This approach can help you to identify any potential issues and remedies related to the information used to draft the VAT/GST return.
Partial recovery method review:
It is important to gain assurance that your current partial recovery method adequately reflects the current nature of your business, meets local legislative requirements and ensures that you have the ability to identify and model the impact of any changes to the business in the future.
How KPMG can help:
KPMG’s Global Indirect Tax practice has considerable experience of designing and negotiating (where required) robust VAT recovery methodologies. With the addition of our technology specialists, we have developed a sophisticated modelling tool designed to help us efficiently test, design or benchmark partial exemption methods.


VAT/GST return Automation:
With the tax authorities increasingly focused on indirect tax compliance and additional regulatory burdens being placed on taxpayers generally, more time and effort is required to evidence the accuracy and completeness of the numbers in the VAT/GST return and financial statements. Automation can help to better manage the manual, repetitive or time consuming data sourcing and consolidation processes. It can also assist with the proactive monitoring of the process by the central team.
How KPMG can help:
KPMG member firms have developed two off the shelf automated service offerings to assist with the VAT/GST compliance process; VAT/GST Cube and Partial Recovery Cube (PX Cube). Both ‘Cubes’ include a significant amount of core functionality, including assigning responsibilities to users, and managers have a wide variety of reports allowing them to access and view data, the progress of tasks, trends and other information at any point in the VAT/GST return process.


Process consulting:
The increased focus of the national tax authorities and also the regulatory burden placed on organizations by increasing regulation is resulting in a general shift at a regional and even global level from local finance and accounting teams to tax departments. However, in order to obtain the most appropriate results, the tax departments must have visibility and a degree of control over the underlying business processes which generate the VAT/GST numbers.
How KPMG can help:
Our member firms service combines the extensive compliance and specific industry knowledge of our Global Indirect Tax network, the experience of designing effective controls and processes and the effective use of process and document management technology. Our firms have teams with the combined VAT/GST, accounting and IT systems skills and experience which will enable us to help you gain appropriate levels of control and confidence in the VAT/ GST processes in your organization.


Online Collaboration:
Global businesses operating in many jurisdictions can create a huge challenge for centralized tax functions. Tax managers should be focusing on ensuring the accuracy and completeness of the figures on VAT/GST returns, Customs declarations and in financial statements. By providing training and regular updates for all those involved in the process, the levels of tax errors can be reduced and risk mitigated.
How KPMG can help:
KPMG member firms offer a range of learning and development options which are tailored to the differing needs of our clients. These include periodic updates (using a variety of media), one-to-one in-depth master classes addressing specific individual requirements, or a full deployment of e-Learning technology to roll out a program of training specifically designed to address bespoke business challenges. Furthermore, KPMG offers GTMS, a web-based platform hosted by KPMG that can allow you access to data and documents in a secure on-line environment, 24/7.


Tim Gillis

Tim Gillis

Head of Global Indirect Tax

Global Indirect Tax Brief

Indirect Tax Brief
Updates on key tax issues and challenges in indirect tax being faced by taxpayers in countries around the world.