VAT in SAP

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Are you certain your SAP system can handle the VAT rules?

Many companies use the SAP accounting system and assume it automatically handles all VAT aspects of purchases and sales correctly. Unfortunately, that is often not the case. We frequently see, for example, that VAT tables—which control how purchases and sales are treated for VAT purposes—are incorrectly configured.

Errors and omissions can lead to delayed workflows, inaccurate accounts, lost revenue, and in severe cases, fines or even legal proceedings. In contrast, optimising your SAP setup can save both time and money—while giving you confidence that your business or organisation complies with VAT regulations.

We advise companies and organisations of all sizes on configuring and upgrading their SAP systems to ensure VAT compliance.

Make sure your SAP system is correctly configured. Contact us for an informal conversation about how we can help your business or organisation with SAP.

BDO and SAP

Whether you need a high-level review or a detailed assessment of your entire SAP system setup and automated VAT reporting, our experts are ready to assist.

  • Review of VAT tables in SAP for purchases and sales
  • Definition and update of necessary VAT checks
  • End-to-end process review to ensure correct VAT reporting to the tax authorities
  • Development and implementation of processes related to master data (tax class setup)
  • Advisory on VAT treatment of supplier invoices and sales orders
  • Review of supplier invoice postings to identify underclaimed or overclaimed VAT
  • Process optimisation and automation of VAT-related tasks
  • Testing of VAT-related processes in the test environment during SAP implementation
  • VAT/SAP training

We work closely with colleagues in Germany, Sweden, Norway, and the UK—experts in VAT—so we also offer a review of postings based on the rules in the countries where your business operates.

You can read more about our various services on the relevant subpages, or feel free to contact us for a conversation about how we can help optimise your SAP solution.

Gain peace of mind and increase efficiency

Our experts often find that businesses only realise their SAP system isn’t fully compliant with VAT regulations when the tax authorities come knocking. With increased scrutiny on VAT codes by the Danish Tax Agency, it’s crucial to ensure your SAP VAT tables assign the correct codes. Incorrect VAT codes can lead to invoices issued with wrong VAT rates—for example, 0% instead of 25%.

Ask yourself: Are you confident the VAT amounts reported to tax authorities are accurate?

Many businesses feel uncertain because incorrect SAP setups can cause miscalculations affecting the bottom line—you might pay too much or too little VAT.

How we can help

  • Review your SAP system to identify potential problem areas
  • Remove uncertainty and provide a foundation for process improvements
  • Automate VAT-related SAP processes that are often still manual
  • Free up your employees to focus on other tasks

We have extensive experience with SAP VAT configuration, including updating VAT tables to ensure correct transaction postings and reporting to the Danish Tax Agency. Our advisory services are tailored to your unique needs.

Next steps

Our experts are ready to assist. We can visit your business for a discussion and a thorough review of your SAP setup.

SAP – Our approach

SAP – Our approach

With many years of experience in VAT configuration within SAP, we have deep insight into the “gaps” in the system and know where typical errors tend to occur. Our strong VAT expertise, combined with in-depth knowledge of IT systems and internal business processes, makes us the ideal partner for tasks such as securing the correct VAT setup in SAP. The process and final deliverables of our SAP consultancy services are always defined in close collaboration with the client and tailored to fit your specific situation and current needs.

Our approach is based on the following steps:

  • Analysis of transactions and your company’s or organisation’s unique characteristics.
  • This involves examining your purchases, sales, customers, and partners to identify potential areas where errors might occur in SAP.
  • Analysis of master data setup. Classification and review of workflows.
  • Compliance review: Using tools such as VAT tables to identify potential errors or gaps in relation to applicable regulations. This may include transactions with external related parties or intra-group companies.
  • Assessment of SAP reporting processes: Are areas such as VAT codes correctly configured in SAP? Are the associated amounts reported accurately?
  • Handling of transactions subject to special VAT rules. A detailed review of applicable rules for special cases, such as triangular transactions.
  • Other reporting obligations: Evaluation of whether there are other reporting requirements not currently addressed in SAP.
  • Reporting: A detailed presentation of identified issues with recommendations on how to resolve them. Suggestions on how various SAP processes can be optimised and automated.

At every step, we do more than just check if the system appears compliant. Our experts have the skills and experience to thoroughly analyse the SAP system and its underlying setup.

Furthermore, we work closely with technical specialists who can implement any necessary changes in your SAP system based on our recommendations, should your organisation lack this expertise internally.

Do you have any questions or need help?