SAF-T Norway: Get ready for the new requirements and Tax Compliance in the different markets across Europe
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SAF-T Norway:
Get ready for the new requirements and Tax
Compliance in the different markets across Europe
Patchanok Kluabkaew
SAP Consultant Tax and Audit
Graham Little
Software Architect
Steve Peirce
Head of Sales UK, Ireland, & Nordics
Logotype
client
April 16th, 2021
TJC Company Overview
KEY FACTS
• More than 20 years of experience in Data Volume
Management and +10 years in Tax and Audit
• Solutions to overcome DVM challenges on the move to
S/4 HANA
• Thought Leadership in Data Archiving & GDPR, Retirement
of legacy systems and Compliancy on Tax & Audit
• +500 clients worldwide
• SAP Partners and SAP Certified software solutions
© 2021 TJC SA. All rights reserved.
Word presence
© 2021 TJC SA. All rights reserved.
TJC Group: 4 areas of expertise
01 COMPLIANCY: TAX & AUDIT READINESS
• Compliancy with tax and audit regulations
• FEC and SAF-T standards
02 SAP DATA ARCHIVING
Make the right-sized move to S/4HANA and Lower the TCO of S4,
Automation of recurring Data Archiving for long-term benefits
03 GDPR SAP DATA MANAGEMENT & SAP ILM
Manage data in your SAP systems to comply with Global
Data Protection Regulations.
04 RETIREMENT OF LEGACY SYSTEMS
• For SAP and non-SAP systems
• Based on SAP Cloud Platform
© 2021 TJC SA. All rights reserved.
Today’s Agenda
1 The nuts and bolts of Norwegian
SAF-T
2 Catch the Next Wave of Tax
Compliance beyond pandemic
3 Tips and Recommendations
4 Find the right SAF-T
solution
5 Final Takeaways
6 Q&A
SAF-T NORWAY
SAF-T Norway
SAF-T is a new electronic XML-based reporting standard for tax, VAT and accounting in Norway. It became mandatory on
1st January 2020 for business with turnover over more than NOK 5 million.
General Ledger master Header
Header
Customer master Location
SAF-T
SAF-T
Master Cash
Files Financial Register
Supplier master Company Cash Register
General
Tax Master Ledger Cash Transactions
entries
© 2021 TJC SA. All rights reserved.
What’s Next?
In a couple of years, we can anticipate the next version of the SAF-T Financial to cover other areas in master files and source documents
getting closer to SAF-T OECD version 2.0. For instance, sales and purchase invoices, payments, inventory movements and asset
transactions as we can see these elements in the schema but not in use for the moment.
Fixed Assets Accounts Receivable
• Asset Master Files • Customers Master data
• Depreciation and • Sales Invoices
Revaluation • Payments
SAF-T
Inventory Financial Accounts Payable
• Product Master data • Suppliers Master data
• Inventory Movements • Purchase Invoices
• Payments
General Ledger entries
• Journals © 2021 TJC SA. All rights reserved.
Modernisation of VAT system in Norway
We are here
Mandate SAF-T New Sales and
Norwegian SAF-T became New VAT Registration Purchase Reporting
mandatory in January 2020 The Tax Administration has New VAT return The sales and purchase
• SAF-T Financial launched a new service that New digital VAT return will be transaction-level reporting are
simplify the registration at the proposal stage. The
• SAF-T Cash Register introduced in 2022 based on SAF- proposal will require changes in
process in the Value Added T Norway VAT codes. It would
Tax Register in March 2021. acts and regulations, and the
include additional boxes to report Ministry of Finance is currently
data of bad debts, adjustment or reviewing the proposition.
Jan reversal of input VAT, and Self-
2020 supplies (withdrawals).
Mar
2021
2023
Jan
2022
© 2021 TJC SA. All rights reserved.
3 Tips for coping with the new changes
SAF-T SOLUTIONS VALIDATION AND
READINESS
ASSESSMENT RECONCILIATION
CHECK
• Plan for resources, business processes • The solution must be able to integrate data • Perform technical validation against
and infrastructure needed.
from multiple source systems into a single schema is a must-have to ensure
• Ensure all SAF-T relevant information report with less intervention from IT. acceptable format to submit to the tax
are available in your SAP and cash authorities.
register system and you are able to • The solution for multinational companies
convert them into required XML format.
should be scalable to next countries and • Working closely with your auditor to
• Perform data quality check control for extensible to industry-specific validate the SAF-T content, control the
your tax master and transactional requirements. balance, reconcile SAF-T data with SAP
data. reports such as GL balance,
• Starting evaluation from standard solution customer/vendor balance.
• Mapping of data such as chart of
accounts and vat codes that shall be to leverage your SAP system, does it fit to
included in the SAF-T report, new VAT your business processes? Are there any • Even though SAF-T report and new VAT
return and sales and purchase limitations? return reporting is independent, but they
reporting.
are based on the same standard VAT
© 2021 TJC SA. All rights reserved.
codes hence they must be coherent.Catch the Next Wave of Tax
Compliance beyond pandemic
SAF-T
VAT Real-time reporting
E-Invoicing
E-Documents
Making Tax Digital
Audit file
Country-specific reporting
Pre-filled VAT Return
VAT Split PaymentVAT gap in EU
The report forecasts that EU
will loss VAT revenue
€164 billion
in 2020 due to the drastic effects of
the coronavirus pandemic
on the EU’s economy.
Evolution of the VAT Gap in the EU, 2014 – 2018 and estimate for 2019
Source: The European Commission’s VAT Gap report
© 2021 TJC SA. All rights reserved.Tax Compliance outlook post COVID-19
The European VAT compliance is undergoing a significant transformation in order to close VAT gap and combat fraud. It is even more
aggressive beyond pandemic.
The growth of tax compliance will possibly overcome economic growth.
Starting point of
RTR and E-Invoice We are here
OECD Portugal Austria Luxembourg France Poland Lithuania Norway UK Hungary Romania
SAF-T SAF-T FAIA FEC JPK i.MAS SAF-T MTD SAF-T SAF-T
Post Audit
SAF-T
2005 2008 2009 2011 2014 2016 2017 2018 2019 2020 2021 2022 2023
Real-time reporting
and e-Invoicing
Spain Hungary Italy Greece Albania Poland France
SII RTIR SdI myDATA B2G, B2B, B2C B2B B2B
e-books e-Invoice e-Invoice e-Invoice &
and e-invoices e-Reporting
© 2021 TJC SA. All rights reserved.Tax Compliance Landscape in Europe
Portugal Austria Spain Italy
• SII mandated in 2017. • Sistema di
First country which SAF-T introduced in 2009. • Daily submission of sales Interscambio (SdI) B2B
adopted SAP-T in 2008. • General Ledger , purchases, specific e-Invoicing
• Monthly sales invoices • Inventory movement Intra-community and implemented in 2019.
reporting • Sales and Purchases intra-community
• Annual accounting file • Fixed asset NO consignment
Luxembourg Lithuania Greece Albania
LT
i.MAS introduced in 2016. E-Invoicing mandatory
FAIA is based on the
• i.SAF: Monthly sales and
UK DE PL • myDATA mandatory e-
• B2G January 2021
OECD version 2.0. It was
purchase invoices
LU books and e-invoices in
• B2B July 2021
introduced in 2011. April 2021
• i.VAZ: Domestic goods • B2C September 2021
movement AT HU
• i.SAFT: Accounting entries FR RO France Poland
Norway Romania IT • FEC introduced in 2014, • JPK mandatory in 2016
ES AL requires general ledger with monthly VAT
and balance
SAF-T implemented in Plan to implement PT GR carryforward
register and declaration
January 2020 SAF-T in mid 2021. and 4 on-demand files.
• B2B e-Invoicing and e- • B2B e-Invoicing in 2023
• SAF-T Financial
Reporting plan in 2023
• SAF-T Cash Register
Germany UK Hungary
• Real-Time Invoice
Audit file (GoBD/GDPdU) Making Tax Digital Reporting (RTIR)
• Master data
SAF-T
(MTD) launched in mandatory in July 2018
• General Ledger April 2019 Real-time reporting and E-Invoicing for domestic B2B sales
• AR / AP • the VAT return • Potential launch SAF-T
• Fixed Asset SAF-T, RTR and E-Invoicing
in 2021
• Inventory Country-specific reporting Information as of March 1st, 2021.
© 2021 TJC SA. All rights reserved.Tips and Recommendations
Tax Authorities require more granular information
MASTER DATA TRANSACTION FINANCIAL REPORTING TAX REPORTING
Customer Sales transactions General Ledger Tax Reporting
Vendor Procurement Financial Reporting SAF-T
Material and Service Inventory movement Real-time VAT reporting
Tax relevant master E-Invoice
GL Master
TAX ADMINISTRATION
© 2021 TJC SA. All rights reserved.Common Pitfalls
MASTER DATA 01
INTEGRATE DATA FROM
Customer/Vendor Tax ID EXTERNAL SOURCES
Alternative Account (missing for local Chart Legacy system, Archived access, non-SAP
of Account) system,
Cash register system, Concur, Ariba, e-
02 05 Commerce, BI, VAT refund system.
TRANSACTION FIELDS MAPPING
TAX ID determination in the transaction Mapping of Tax Codes
Source field for Invoice Number Mapping of local Chart of Accounts and
General Ledger
Supplier invoice number (full reference over
16 chars) Configuration Reporting fields can be kept differently in
your system
BREXIT 03 04
CONFIGURATION
Tax Procedure and VAT code
Plants Abroad, Split Payment, Drop
shipment, Triangulation, Intercompany, © 2021 TJC SA. All rights reserved.Key Challenges
1. PEOPLE 2. PROCESS 3. SYSTEM 4. DATA MANAGEMENT
• Limited availability of • Numerous tax compliances • SAF-T is a complex file and • Garbage in, Garbage out
finance and tax teams to have been launching with non-harmonized structure (GIGO)
manage special requests short notice time frames among different countries. • Misclassifying a product
• Multiplicity of • Maintaining awareness of The same is true of e- or service
stakeholders: finance, tax, regulatory changes and Invoicing and RTR. • SAF-T files validation
SAP consultants and IT, etc. how it impacts your • Difficulty to obtain data • Data reconciliation
• Require special skill set to company from different source
including non-SAP and • Address error and
handle tax compliance • Dealing with multitude of rectification
topics legislations and local generate compliant file
requirements • Improper SAP configuration
generates irregularities
• Solution extension to meet
business needs or
industry-specific
requirements
© 2021 TJC SA. All rights reserved.Tax Compliance
Regulatory Tax Master Best Practice Tax Data Tax data
Monitoring Data SAP Reconciliation extraction and
Procedure Governance Configuration Reporting tool
© 2021 TJC SA. All rights reserved.Key success factor in Tax Compliance Project
Tax Team IT Team
Collaboration
© 2021 TJC SA. All rights reserved.It’s time to reimagine the B2G Team
Talent Transformation:
© 2021 TJC SA. All rights reserved.Find the right partner
Make sure you find B2G partner with the breadth of knowledge that
can bridge the GAP between key stakeholders in tax management.
SAP
Design and configure SAP system to respond to the tax digitalisation
imperative at a global and local scale.
TAX
Monitoring, analyzing and interpreting the changing tax legislation to ensure
compliance. Assist tax/accounting teams with tax reporting problems in SAP.
TECHNOLOGY
Embracing emerging technologies to create innovation and robust solutions.
From ABAP to Fiori and SAP Cloud Platform.
© 2021 TJC SA. All rights reserved.Find the right partner
Norwegian SAF-T
XML FORMAT IT TEAM
&@!#POLL TIME
Go to www.menti.com
Type the code: 1020 7076POLLS What were the biggest challenges that you had with Tax Compliance worldwide? A) Regulatory Monitoring B) Understand local legal requirements C) Find the right solutions D) Limited availability E) All the above
POLLS Which criteria to choose your SAF-T Solution matters the most? A) Consolidate data from multiple source systems including archived B) Extension the solution for specific requirements C) Flexibility of Data mapping D) Data Validation and Reconciliation E) Centralised solution to manage SAF-T in all countries F) All the above
Find the right SAF-T Solution
SAF-T Norway SAP standard solution
SAF-T Norway is available in ECC, S/4HANA and Advanced Compliance Reporting (ACR) S/4HANA 2020 FPS1. SAP
Standard solution is a good fit SAF-T solution when you are NOT in below situations:
• You need to consolidate data from multiple data source systems such as archived files, other SAP ecosystems, non-
SAP systems, etc.
• You are required to submit SAF-T Cash Register file
• You have some specific requirements e.g., collect data from custom tables and fields, RE-FX
• You do not follow SAP best practice for master data maintenance and configuration
• Resource constraints or time constraints to understand and implement the solution by yourself
Did you know?
The Announcement of Legal Change application in SAP ONE Support Launchpad provides an overview of
the upcoming legal changes in each country and relevant SAP notes.
For further requests on SAF-T Norway on the legal change with SAP please visit the Jam group
https://jam4.sapjam.com/groups/p9pblV2bI35Hhgad6TQwHZ/overview_page/X55M4Xw7N2syDi1K55tDrA
No access? Send a request to erik.toernqvist@sap.com
© 2021 TJC SA. All rights reserved.Things to consider when choosing SAF-T Solution
Have you thought about?
• Does the solution allow extraction from online, archived or Yes No
Medium
even non-SAP data sources? High
Low
• Do they have regulatory monitoring procedure put in place Yes No Very
No Risk
and understand country specific legal requirement? High
• Can the solution easily take into account custom tables or Yes No What is your Risk Level?
industry solutions and allow extension?
• Can auditors validate data for individual segments without Yes No If the answer to any of these questions
creating a complete xml file? is NO, you may be complicating the
work of your auditors leading to extra
• Is there a clear correlation between the data chosen and Yes No costs and even incomplete extractions!
the SAF-T format?
We believe data extraction should not
Is there complete traceability of every step and advanced be a brake for your auditors and create
• Yes No
non-compliance and reputational risk.
admin functionality regarding security and performance?
© 2021 TJC SA. All rights reserved.Common misconceptions
SAF-T data extraction is more complex
‘Early bird’ learnings: than just an IT solution.
• Each customer’s SAP system is unique.
• Not just about data but the tax
Common
knowledge and information needed to
misconcept
extract the right data.
ion
• Persistent pressure to comply to country Extract large
Submit SAF-T xml
volumes of data
tax authorities’ requirements. files to tax
from SAP system
authorities.
into xml files.
• Effective oversight of the tax reporting
from centralise
• Misconception of the extraction process Actual
auditors’ Auditors
and data needed.
process validate
Extract data from
data
SAP system for
Create XML
auditors to upload consistency,
onto their analytics file
tool*. analyse,
and do due
diligence.
© 2021 TJC SA. All rights reserved.TJC Solution Architecture Diagram
© 2021 TJC SA. All rights reserved.Key Benefits from TJC Solution
UNIFIED EXPERIENCE COMPLIANCE
Centralized control of SAF-T process with • Confidence in your data content
unified solution across country operations for report preparation.
• One solution with add-ons that
contain local tax requirement
content.
EFFICIENCY
Seamless and efficient
FLEXIBILITY
process for SAF-T report Flexibility for your auditors to extract the
preparation. data and prepare reports on time.
SIMPLIFY SECURITY and PERFORMANCE
One vendor, one contract. • Gives IT security and administrative
Allow to extract large volumes of data from rights but reduces their data extraction
online, archived and non-SAP sources workload.
• Security parameters for your business
data
© 2021 TJC SA. All rights reserved.B2G by TJC
TJC Solutions SAP Solutions
for Audit and Tax for Tax Management
• Audit Extraction Cockpit (AEC) • Standard Audit File for Tax (SAF-T)
• Fichier des Écritures Comptables (FEC) • SAP Advanced Compliance Reporting (ACR)
• Standard Audit File for Tax (SAF-T) • SAP Document Compliance (e-Document)
• SAP Tax Compliance (Ensure accuracy of tax data)
B2G
• Real-time reporting (Sii)
• DART workspace
• DART Sessions Cockpit (DSC)
Expertise
Consulting Services Move to S/4HANA
Expertise on demand Methodology with TJC
• B2G Officer • Certified solutions in S/4HANA
• B2G new requirement, process improvement • Digital transformation to simplify
• Best practices for EU VAT, Plants Abroad, Split Payment, and streamline business processes
Drop shipment, Triangulation, Intercompany, etc.
• Health Check
• Workshops/Training
• Extension, Integration, Automation
© 2021 TJC SA. All rights reserved.Final takeaways
Best Practices
For preparing and submitting your SAF-T reporting
Select the right solution and partner
Right solution help you extract the correct data and save your time and
effort.
Fiscal Archive properly
• Data consistency is essential to auditors for compliance purposes
• Backup is not fiscal archiving. Backup method does not isolate and
freeze the original data to ensure consistency because it allows
continuous data processing.
Consider SAF-T as part of your IT and business strategy to plan:
• For resources
• For business operations process
• For infrastructure needed
Work closely with your auditor to:
• Understand and prepare for the compliant files for each
country
• Identify further data analytics opportunities with the file
extracted
© 2021 TJC SA. All rights reserved.Key Takeaways for Tax teams
One centralised solution covers all SAF-T countries across Europe to produce
compliant XML files in a timely manner and unified user experience.
A solution that extract the right data and
flexibility for data selection.
A solution that can reduce your time and effort to
address errors and carry out reconciliation.
A partner who can help you keep up with regulatory changes
to avoid cost of non-compliance and reputational risk.
A partner who can relieve your tax burden and bridge the gap
between key stakeholders and create synergy of your Tax and IT
team.
© 2021 TJC SA. All rights reserved.Key Takeaways for IT teams
A single solution for all countries
instead of fragmented solutions.
A compliant solution that give autonomy to users, less
require intervention from IT department while at the same
time retaining control on SAP systems and security rights.
An extensibility solution that can be adapted to meet
your specific requirement and industry-specific.
A solution directly extract data from SAP and be able to
integrate multiple heterogeneous data sources.
Support your future moving to S/4HANA.
© 2021 TJC SA. All rights reserved.PROACTIVE or REACTIVE Approach?
© 2021 TJC SA. All rights reserved.Q&A
Steve Peirce
TJC UK/Ireland
Nordics & USA
speirce@tjc-group.com
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