VAT Determination - Purchasing

Strengthen audit compliance and improve invoice verification accuracy

Automate the purchase invoice validation process

Complex supply chains come with transactional complexities. For multinational companies trading across multiple borders and between many VAT-registered businesses, VAT determination decisions can be difficult to get right every time.

Incorrect VAT determination has operational and financial consequences. This is why it’s important to validate purchase invoices to ensure goods and services are correctly classified and any compliance risks are identified early.

Invoices must be checked to meet stringent criteria to enable VAT deduction entitlement, but these checks can be too complex to perform manually. Non-compliant invoices can impact VAT recovery and therefore cashflow, reputation and risk financial penalties during an audit. 

An automated solution tailored to your purchasing requirements

Sovos VAT Determination – Purchasing alleviates the burden involved in approving purchase invoices by validating that the VAT decisions they comprise are correct, freeing up tax and IT teams to concentrate on other important aspects that are core to your business.

The Sovos VAT Determination – Purchasing add-on extends SAP standard VAT determination, providing you with confidence in the data accuracy of incoming purchase invoices.

Sovos VAT Determination is a flexible, automated suite of SAP-certified modules providing efficient, transparent and correct identification of VAT determination processes across chain transactions for sales and purchases, including VAT ID checks, monitoring and reporting. Sovos VAT Determination – Purchasing is one of four add-ons within the suite with extensive functionality capable of handling the most complex of supply chains.  

Sovos VAT Determination - Purchasing module is a certified add-on for SAP

Increase compliance by validating incoming purchase invoices

Secure and intelligent SAP certified add-on for monitoring and validating incoming purchase invoices

Automated VAT assessment for all incoming transactions ensuring data accuracy and compliance

Reduced compliance risks with correct classification for input tax deduction

Transparent determination decisions resulting in quality data, reducing tax audit risk

Increased efficiency through easy-to-use configuration and system functionality

Determine transaction types (VAT facts and circumstances) and define VAT-relevant parameters

One-off integration of a single SAP add-on provides cost savings compared to ongoing customisation requests