We are in a year marked by many political events that create uncertainty and doubts for companies. Tax reform is an example of this, as it will undoubtedly have a significant impact on companies, especially those still using older ERP versions and needing to migrate their systems both to meet new requirements and to keep up with technological evolution and, consequently, perform better.
For organizations that have different SAP ERPs and need to improve their tax capabilities, which paths should they follow and what should they adopt? This question lingers because SAP solutions address the tax and fiscal area, but when we talk about Brazil and companies operating in the domestic market, what is offered alone ends up being insufficient to maintain compliance, considering the hundreds of laws and regulations that must be followed.
To fill this gap in sector solutions, tax add-ons, which are specific systems for handling tax processes comprehensively, are the ideal solution to ensure fiscal compliance efficiently.
We have prepared some tips with possible tax solution architecture options for companies using SAP ERPs and also considering the process of updating and/or migrating to the cloud, with some concerns about the investment and what to take into account.
It is important to note that there is no scenario better than another. To make a strategic decision, it is necessary to analyze the cost/benefit of each technology and its particularities, always weighing the characteristics of each company and its objectives in relation to the technology roadmap.
– The TDF (Tax Declaration Framework), for example, is the tax management platform – separate from SAP ERPs – developed to meet the legal requirements demanded by the Brazilian tax authority and recommended for companies with high data volume, using the global ERP and having restrictions on applying recurring updates to meet Brazilian tax standards and legal obligations. TDF data is the same as the ERP data, with no need to duplicate it, and if it becomes necessary to update any information in the ERP, it is instantly updated in the TDF.
– The DRC (Document and Reporting Compliance) is the tax management platform – embedded and exclusive to the S/4Hana ERP, whether in the on-premises, private cloud or public cloud version – developed to handle inbound and outbound tax documents and legal requirements of various countries. The tax add-on is necessary to complement and generate tax calculations and ancillary obligations. Since this is a cloud-based ERP system, to preserve the product core and avoid impact the global instance, the BTP (Business Technology Platform) is used, which communicates with the S/4Hana cloud to read information, process it, and fulfill regulatory requirements.
Both solutions are quite similar, with small differences between them. To maximize their potential and ensure fiscal and tax compliance, it is strategic to rely on tax add-ons.
See in our free webinar the challenges of integrated, embedded, TDF and DRC architectures and the details of each SAP platform.
We have extensive knowledge of SAP products, which is why we have developed exclusive solutions to complement your ERPs and enable your company to meet Brazilian tax compliance efficiently. Always count on us to overcome this and other challenges!