Financial Services Ireland

CASE STUDY

Case study: VAT reporting tool

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The client’s request

Our client is a multinational financial institution. They asked us to review the VAT monthly process for bespoke automation. We developed a VAT reporting tool using data analytics. It involves inputting the client’s raw data to the tool and uses bespoke instructions to turn the raw data into reportable VAT output required by the client. We were able to eliminate potential human error, develop an automated analytical review, complete segregation of duties, process documentation and using a rule-based program, our solution significantly increases the level of assurance over the process.

Original process

  • A manual process is carried out each month by the in-house tax team to perform repetitive tasks each month as part of the VAT return preparation process.
  • 2-3 days every month required of the tax team’s time.
  • Multiple systems used to obtain data to prepare the VAT details.

New process

The process is now done every month, improving financial reporting, business forecasting and segregation of duties.  The new process eliminates the potential of human error, improves overall tax risk.

  • The VAT tool reduces the tax team’s time from 2-3 days every month to .8 of a second.
  • Process time was reduced by 99% for each cycle.
  • The new process reduces risk of human error from manual data entry.
  • The tool works across internal accounting systems to extract relevant data, manipulate that data, perform specific VAT calculations for separate business units and produce the amounts to be submitted to the tax authorities.
  • There is a clear audit trail in case of Revenue audit.
  • Euro conversion capabilities.
  • The client team can focus on the review instead of the manual data input and it provides a segregation of duties.

Our solution is flexible and allows the client to add on additional services as and when required. The tool provides the finance function with more up-to-date information on a regular basis. This reduces the requirement for training or losing key skills within the department from a tax perspective.

Thought Leaders


Ellen Bone

FSO leader in Tax Technology and Transformation

Sinéad Colreavy

FS Partner, Business Tax Advisory