Digital security about VAT-compliance at Dufry
With Taxmarc, an add-on for SAP, Dufry is now in control of their VAT position. Dufry is one of the world's leading travel retailers with operations in 63 countries. Dufry operates over 2,200 duty-free and duty-paid shops located at airports and in other touristic locations.
What was the problem?
Before the implementation of Taxmarc, Dufry was not completely in control of their VAT position since their SAP system did not have the capacity to determine the correct indirect tax treatments for complex goods and services transactions. In order to compensate these shortcomings in their standard SAP indirect tax setup, they were forced to make use of workarounds. This way of working is error-prone and takes a significant amount of time.
What was the solution?
PwC implemented Taxmarc, which extends standard SAP VAT logic, to fulfill Dufry's present day’s indirect tax requirements. PwC implemented the Taxmarc add-on for 11 countries. Subsequently, Taxmarc has been customized to fit the needs of Dufry. For instance, a connection was made between the Taxmarc logic and Dufry's external ‘Point of Sales’- system, furthermore, Dufry's import-decision matrix has been included in the Taxmarc logic.
What was the result?
Due to the implementation of Taxmarc, the number of tax errors occurring in SAP has significantly reduced due to the integrated Tax Control Framework. Furthermore, the master data quality has improved and almost all transactions, both incoming and outgoing, have automated VAT determination. Additionally, Dufry's SAP system has become more user friendly for tax managers to work with. VAT information is centralized and presented in a way which is easily understandable. To conclude, thanks to Taxmarc Dufry has an SAP system that ensures that VAT compliance is no longer a challenge, but a digital certainty.
