SAP Global Tax Management


Global Tax Management: An Overview and Key Considerations

What is Global Tax Management

Global tax management is the process by which tax managers evaluate the global taxability of an organization’s industry, corporate structure, business model, operations, products or services, business activities, and daily transactions.

To ensure global tax reporting requirements are met accurately and consistently by all subsidiaries across multiple tax jurisdictions, global tax management requires a holistic view of an organization’s entire flow of transactional data across its entire value chain.

Global tax management brings together disparate technologies, different currencies, and various regulators, contributing to complexity across the tax function.

Global Tax Management: An Overview and Key Considerations

What is Global Tax Management

Global tax management is the process by which tax managers evaluate the global taxability of an organization’s industry, corporate structure, business model, operations, products or services, business activities, and daily transactions.

To ensure global tax reporting requirements are met accurately and consistently by all subsidiaries across multiple tax jurisdictions, global tax management requires a holistic view of an organization’s entire flow of transactional data across its entire value chain.

Global tax management brings together disparate technologies, different currencies, and various regulators, contributing to complexity across the tax function.

For many organizations, global tax management typically involves these three steps:

  • Define compliance needs worldwide across all operating units, lines of business, tax jurisdictions.
  • Map businesss processes to govern how compliance should flow through the organization globally.
  • Implement technology solutions that can accurately collect information and content updates from disparate sources in alignment with defined business processes to deliver master data and financial information asynchronously as required.

Key Considerations for SAPinsiders

Understand the growing complexity of global tax management. Organizations considering different areas of the world for new potential opportunities must be aware of how these business interests can affect the local country’s taxation. Changing legislation and mandates around global tax management is becoming ever more complex as organizations face growing challenges in evaluating how their growth initiatives may impact global tax liabilities.

Evaluate your content needs for effective global tax compliance. Tax managers need to consider what global activities may be taxed in which locations and ensure that they are meeting the tax requirements of each country accurately and promptly. Greater global tax compliance efficiency can help organizations reallocate accounting resources to support revenue-generating tax compliance opportunities.

Implement technology to simplify global tax management needs. The Ingram Micro and Dow Chemicals case studies provide best practices outlining how technology makes it possible to create a global view of the enterprise, enabling tax function managers responsible for global compliance, global reporting, and global controls. Content updates that provide real-time data on tax jurisdictions, tax rates, and tax content changes are critical for efficient global tax compliance.

84 results

  1. Growing Compliance Complexity Driving Approach to Tax Planning, Tax Technology and Innovation

    Published: 22/September/2023

    Reading time: 5 mins

    The global tax landscape has become increasingly complex, as governments around the world are changing the ways that they monitor companies and ensure compliance. SAP S/4HANA-enabled transformation has far-reaching impacts on tax departments, including Direct Tax, Indirect Tax, Transfer Pricing, and Trade & Customs. To explore the implications on tax planning, tax technology, and innovation,…
  2. Next Generation E-Invoicing: Reducing Costs by Eliminating Operational Challenges and Increasing Scalability

    September 21, 2023

    Changing your ERP system is a big undertaking but also an opportunity to update and align your e-invoicing strategy to meet global regulatory changes. In moving to SAP S/4HANA organizations are asking questions about how to reduce migration costs and complexity while preparing for upcoming EU proposals. Indirect tax compliance should be a key consideration…
  3. Webinar: Global Tax Management 2023 – Benchmark Report

    September 12, 2023

    Last year's research on global tax management confirmed the importance of digital transformation in finance and tax functions, facilitated by initiatives such as SAP S/4HANA migration, automation, and AI/ML. This report explores how the priorities of SAPinsiders in various aspects of taxation and technology have evolved and how organizations have adapted their global tax management…
  4. financial close

    Vertex Indirect Tax Determination Solution Earns SAP Endorsement

    Published: 31/July/2023

    Reading time: 2 mins

    In a press release, the tax experts at Vertex recently announced the Vertex Indirect Tax Determination solution has been named an SAP Endorsed App for the North America region. This solution provides a single tax engine that automates and centralizes sales and use taxes, as well as VAT. In this article, we will highlight some…
  5. Solution Brief: Arco Tax Determination for SAP BTP Helps Streamline VAT Compliance

    Published: 28/July/2023

    Reading time: 3 mins

    According to SAPinsider’s 2023 Global Tax Management benchmark report, 80% of these teams recognize the critical need for automated reconciliation of various indirect tax reports to strengthen their global tax management strategy. Additionally, 75% of organizations say they must enhance the accuracy of their real-time indirect tax determinations. For businesses operating in Europe, automating these…
  6. Seven Key Benefits of Automating VAT Determination

    Published: 25/July/2023

    Reading time: 2 mins

    Automation is a key tool for tax teams to keep pace with their workloads while staying on top of shifting regulations. These challenges are magnified for companies that do business across multiple geographies with differing laws. To take a look at the benefits of VAT determination automation, we reviewed a white paper from the tax…
  7. Accounts Payable

    Avalara’s Guide to Avoiding Five Common Sales Tax Registration Mistakes

    Published: 19/July/2023

    Reading time: 3 mins

    Sales tax can be burdensome for organizations of any size. Small businesses may face the largest struggle when it comes to sales tax registrations, as they likely do not have a taxation expert on their staff. Many small business owners who lack expertise are forced to comb through tax legislation to ensure they pay what…
  8. Accounts Payable

    Managing and Automating Payroll Tax Determinations

    Published: 14/July/2023

    Reading time: 2 mins

    Organizations of all sizes can struggle to keep up with the pace of change in the tax landscape. Federal, state, and local regulations are constantly in flux, and some teams may struggle to keep up. Compounding these issues, many enterprises still rely on manual tax processes. This can cause errors and take excessive amounts of…
  9. Global Tax Management 2023 – Benchmark Report

    Published: 30/June/2023

    Reading time: 1 mins

    Last year's research on global tax management confirmed the importance of digital transformation in finance and tax functions, facilitated by initiatives such as SAP S/4HANA migration, automation, and AI/ML. This report explores how the priorities of SAPinsiders in various aspects of taxation and technology have evolved and how organizations have adapted their global tax management…
  10. Embracing SAP BTP and Avalara Solutions During S4 Migration to Meet Tax Compliance Mandates

    Published: 20/June/2023

    Reading time: 7 mins

    As the global business landscape evolves, organizations are increasingly transitioning from SAP ECC to SAP S/4HANA to stay competitive and adapt to the latest technology. The way this migration is done affects the incremental value of S/4HANA over ECC. S/4HANA is more than a feature upgrade. It is a rethink of how you adapt your…