Input tax deduction for mixed purpose expenditures – audit-proof with VERA
Increase the volume of deductible input tax
Whenever a company with non-taxable and taxable sales asserts the amount of deductible input tax, a wide range of requirements have to be met. The tax authorities require the allocation of the taxed expenditure to the corresponding output revenue. In practice this direct allocationbecomes a challenge especially for banks, insurance companies and health organizations. The majority of revenues are exempt from tax and consequentially exclude the deduction of input tax. However, there are taxable or non-taxable but deductible expenses, for instance cross border transactions.
VERA - the only software for input tax distribution
The solution is a system to determine direct allocation. This procedure is the core of our VERAsoftware. VERAassigns the correct deduction rate for each relevant business transaction. You will never be left with the pro rata key due to a lack of alternatives again.
Gross- or net postings? Irrelevant!
With VERA, you streamline accounting procedures and automate the process of deduction - while the tax department is fully in charge of the input tax deduction. VERA is separating the input tax distribution from initial posting of the invoice. The posting of deductible input tax is determined independent of tax codes and based on master data defined by the tax department. The complete integration into the ERP-system allows the automated evaluation of every relevantbusiness transaction as well as adjustment postings entirely within your ERP-system.
Audit conformity and compliance
All legal requirements are met; in addition, the embedded information system provides comprehensive support for tax audits. The identification and audit-proof documentation at line item level allow for the disclosure of the deduction potential as well as the transparency of its audit trail. As a result of the process optimizations by VERA, tax departments can now focus on the determination of the deduction rates as well as the evaluation of special cases. Consequently, currently over 100 businesses rely on VERA as their solution for the input tax deduction.
§ 15a VAT Act
Benefits:
- Optimization and automation of the reporting process for input tax
- Compliance with all legal requirements
- Expandable for country-specific requirements
- The detailed and individual breakdown of deduction rates for input tax regarding accounts, cost centers, internal orders, projects, WBS elements, and real estate
- Provision with clear time reference incl. audit-proof documentation of all corrections
- Technical environment: Fully integrated into the SAP system or connected via an interface
References
VERA-Einführung bei der Hephata
Die Hephata fand für ihre Werkstätten für Menschen mit Behinderung (WfbM) mit VERA die Lösung, um den Vorsteuerabzug auch bei verschiedenen Kombinationen umsatzsteuerfreier und -pflichtiger Ausgangsumsätze zu verbuchen.
VERA-Einführung bei der Sparkasse KölnBonn
Oft unterstützen Buchhaltungssysteme keine automatisierte Vorsteuererfassung. Dies gilt auch außerhalb von SAP-Umgebungen. Die Non-SAP Variante von VERA erweiterte genau an dieser Stelle die Möglichkeiten z.B. mit der Abbildung des §15a USTG, erstmals also auch für die Welt der Sparkassen!
VERA-Einführung bei der HSH Nordbank (jetzt HCOB)
Die HSH-Nordbank (heute HCOB) ist ein VERA-Kunde der ersten Stunde. Nach der Pilotphase und Produktreife wurde VERA hier erstmals als Produkt implementiert und war somit keine Projektlösung. Trotz vieler bewegter Jahre, VERA ist seit dem Go-Live Ende November 2002 bis zum heutigen Tage im Einsatz!
VERA explained in detail in 30 minutes
Deloitte, our cooperation partner, presented our SAP Ad-on VERA in detail in a webcast on 8 August.
Contact
Miklós Hegybiró
Managing Director
IKOR Products GmbH
info-products@ikor.one
+49 40 8199442-0
Björn Mayer
Principal Consultant
IKOR Products GmbH
info-products@ikor.one
+49 40 8199442-0
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