Data processing and validation
VAT Filing's approach to support businesses in compliance and risk management.
- Data enhancement at the time of import
- Validation and analysis of a data set
- Manual and bulk data modification
VAT Filing supports businesses by fixing issues, improving data quality, and mitigating risks and cost of compliance.
Data enhancement at the time of import
Source systems are not always efficient or reliable when it comes to ensuring data quality.
Unforeseen errors in transactions, such as inaccurate or missing data, often cause businesses to waste time fixing mistakes. To solve this problem, Sovos allows you to simplify the setup and modification of data enhancement rules that automate calculations and conversions.
- Name
- Name of the rule.
- Description
- Description of the rule.
- Condition (IF)
- Condition upon which data modification is started by combining data fields and operators. Possible values come from your database.
- Consequence (THEN)
- Consequence that data will suffer. Possible values to this characteristic come from your database.
- Data Fields
- List of data fields.
- Operators
- Used to construct the data accuracy rule.
- Lookup Tables
- If there are any lookup tables created for the account, they can be part of the rule to change and complete data during import. These tables can also be used in an analysis to verify data after import. The lookup tables can be used to replace complex rules that otherwise may become difficult to understand or not easy to manage.
- Currency conversion
- A business' general ledger and all internal reports have transactions in U.S. dollars (USD). However, in some countries, the reporting currency must be euros (EUR) regardless of what currency your ledger reflects. To avoid manually calculating the foreign exchange rate for each invoice, you can set a rule saying that if the currency is in USD, the value must be converted to EUR. The calculation is based on current foreign exchange rates from the European Central Bank at the time of the calculation.
- Missing information
- While submitted transactions always contain the customer name, they do not contain the VAT code. This can cause issues if the VAT code is required for filing returns. Sovos allows you to set rules to avoid missing this important information. For example, a rule could state that every time customer "ABC" is mentioned in an import, the VAT code will automatically be filled with "FR123xxx".
Any transaction with one or more enhancements will be highlighted and viewable in the transaction's history, along with the original value.
Validation and analysis of a data set
Sovos' validation and analysis tools help you reconcile returns quickly without compromising accuracy. Each tax return shows important summary totals, such as total sold, total due, and quantity of transactions, as well as valuable next-level down information. This information helps your team identify issues that may not be reflected in your general ledger.
Sovos also continuously monitors transaction data to highlight and recommend transactions not included in a return. As a result, you can always add new transactions to your return before filing and amend it after filing. Events are automatically stored and easily viewable in the return's event history to ensure a thorough audit trail. You can also add comments to your event history to ensure transparency between team members.
Manual and bulk data modification
Sovos supports manual and bulk edits on transactions, in jurisdictions where this is permitted by tax authorities.
Countries that use Continuous Transaction Controls (CTC) do not allow data manipulation after it has been reported to the tax authority. Sovos automatically hides features that are unavailable to ensure your team follows the compliance requirements of each country.