Vertex Indirect Tax Determination Solution Earns SAP Endorsement

Vertex, a leading tax software and solutions provider, recently announced its Vertex Indirect Tax Determination for SAP ERP and SAP S/4HANA product 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.

Solutions with the SAP Endorsed App designation have achieved premium certifications for integrations with SAP offerings and for their adherence to best practices. These solutions have undergone rigorous testing, feature added security, and have been measured against benchmark results.

“Ecosystem innovations are essential to SAP’s vision and delivery of the intelligent enterprise for SAP customers. We applaud Vertex on achieving SAP Endorsed App status for their O Series Cloud solution. Partners like Vertex are positioned to help us deliver a cloud-first strategy with integrated innovations, proven to provide value while solving key business challenges,” said SAP Global Vice President Darryl Gray in a press release.

Meeting the Market

The Vertex Indirect Tax Determination for SAP ERP and SAP S/4HANA provides users with a solution that addresses some of the key concerns that tax teams have. The SAPinsider Global Tax Management Benchmark Report found that indirect tax regulatory updates, like those changes to sales and use tax regulations and VAT compliance have a significant effect on how many tax teams operated in 2023.

The report found that 44% of tax teams said sales and use tax compliance affected their workload, while 42% said the same of VAT/GST compliance. These figures both ranked among the highest shares of all regulatory update types.

Even as regulations change, the effect that they have on tax teams has shown to decrease. Automated solutions, like those from Vertex, can lighten the burden of these new rules. The Vertex O Series tax management solution continuously updates tax rates for 19,000 jurisdictions worldwide.

Tax Engines

By automating tax calculations, companies can ensure that they minimize their tax burden by paying the correct amount the first time, while also reducing the risk of an audit. The solution also offers industry-specific content as needed. By tailoring this solution, businesses can have their tax teams work on other important tasks that add value to the organization.

Indirect tax compliance can be time consuming. When tax teams have to manually ensure compliance, this limits their capacity to provide strategic value. By utilizing global tax engines, organizations can reduce manual tasks and enhance visibility into indirect tax determination workflows, thereby allowing for a more efficient use of resources.

More than 70% of SAP organizations still use accounting, ERP, or financial systems to handle their indirect tax compliance. Yet a growing number are looking to utilize third-party tax engines like Vertex to assist with compliance. Vertex is far and away the most popular third-party tax engine companies turn to. As organizations expand globally and tax regulations continue to shift, the capabilities offered by Vertex to SAP organizations will only continue to grow more vital for organizations to minimize tax burden and remain compliant.