What is Taxmarc

Taxmarc is an indirect tax engine capable of handling all your tax scenarios

Key characteristics

Automatically in compliance, always in control

Standard SAP
Taxmarc is an SAP certified solution, it is based on the principle that all VAT relevant data is captured within (standard) SAP
Compatible with all recent SAP versions
Taxmarc is built in enhancement implementations / BADI’s (no core modifications! ) and is therefore compatible with all recent versions (7.01 SP level 18 and higher) in SAP including SAP S/4HANA.
Flexible architecture
Taxmarc can be installed as an internal engine or as an external engine, on premise or in the cloud to be able to cater for every client's IT landscape. Each (ERP) system can connect to Taxmarc via XML/JSON file format.
Independent embedded engine
VAT determination done within SAP with standard SAP functionality. Taxmarc runs independent from existing (old) developments. There is no need (except US) to communicate with an external tax engine. No impact on existing developments because of ‘Stand alone’ principal.
TCF
A Tax Control Framework (TCF) at transactional level is embedded for each supply chain transaction.
Missing tax data and non-compliancy’s are immediately detected. Real time email messages sent by the TCF alert function
Data linking / gathering
Taxmarc improves data linking in SAP in order to achieve automated VAT determination in an accurate manner. For example AP and AR data is linked for the automated VAT determination of supply chains exceeding two parties. 75% of Taxmarc is based on intelligent data gathering within SAP.
Tax data warehouse / data quality
All relevant data used for tax determination is stored in SAP and is therefore owned by the company itself (no black box). This provides real time access to company’s sales and purchase blueprint.
Smart testing approach
Earlier booked transactions can be used to automatically test the new Taxmarc functionality. This will decrease the time spent on UAT and regression testing significantly.
Navigation
With the embedded navigation tool, a tax manager doesn’t need SAP knowledge. All relevant data to analyze a problem is captured together at one place (/TAXMARC/CP).
Maintenance / Instruction guide
Easy maintenance at one central point; Taxmarc Implementation Guide (/TAXMARC/IMG) includes embedded instruction guide.

SAP certified

Taxmarc is a SAP certified solution

Taxmarc has renewed its certification in February 2022. It is certified for both R3 and S/4 HANA. This confirms the technical compliance of Taxmarc with SAP development principles and guidelines. Taxmarc is an SAP certified indirect tax engine (add-on) solution realizing automated indirect tax determination based on real time data for incoming and outgoing invoices

Taxmarc components

The Taxmarc solution consists of two components, the Taxmarc Agent, and the Taxmarc Core. The Taxmarc Core is the heart of the tax engine that makes the actual tax decision based on applicable tax laws and customer configuration parameters. This Core can run as a standalone Engine in any of your SAP systems or even as a Cloud service.

For the Core to make the correct decision, a lot of input parameters are required. Source and destination of the product, taxability of customer and product to name some of them. The gathering of all required parameters is a complex process. If your transaction system is an SAP system, you can install the Taxmarc Agent to take care of the data gathering part, using the standard data and transaction links in an SAP system. At the same time, the Taxmarc Agent provides additional functionality like the Tax Control Framework.

For more information, please watch our cloud movie: Taxmarc Cloud movie

Agent: Data gathering

Installing the Taxmarc Agent in your SAP system means you will get access to additional Taxmarc fields in the master data (material, customer, vendor) and during order entry (sales and purchase). Those fields are needed for tax determination but are not available in standard SAP. Examples are a field to specify who is responsible for the export of goods in an ABC export scenario.

The Taxmarc agent also contains the logic to gather the correct relevant tax fields and configuration required for tax determination by the Taxmarc Core. The Agent does not carry out any tax determination. No tax decisions are made. It simply gathers the parameters required for tax determination. It does that by extracting data from the standard transaction and linking documents for tax determination in multi document flows (like Intercompany or dropship) The Agent always needs to be installed in the SAP system where the sales and purchase transactions takes place.

For a non-SAP system, calling the Taxmarc Core an agent will have to be developed in the calling external system that gathers the parameters required by the Core.

In addition to data gathering, the Taxmarc Agent in an SAP environment also contains extensive additional functionality to block and analyze non-compliant transactions.