Effective Value-Added Tax (VAT) Management in a Global Context

73% of Leading Companies Are More Likely Than Their Competitors to Automate the Update of Tax Rates and Laws in a Central Database to Facilitate Access


BOSTON, MA--(Marketwire - February 9, 2011) -  In a newly-released report, Managing Value-Added Tax (VAT) in a Global Environment, Aberdeen Group, a Harte-Hanks Company (NYSE: HHS), provides guidance on effective Value-Added Tax (VAT) management. The report identifies strategic combinations of process re-engineering and software automation, necessary for ensuring efficient global transaction tax management.

"Improving VAT management can contribute significantly to the reduction of audit exposure / risk, but many organizations lack the initiatives, capabilities, and technological enablers to mitigate such risks," states William Jan, Senior Analyst at Aberdeen Group. "Top performers have effective VAT management capabilities as defined by: a strong alignment of domain expertise to compliance measures, and effective technological enablers that allow access to tax information and regulations for accurate transactions."

This report hypothesizes that to achieve success in managing VAT, leading organizations must have effective access to taxability requirements and tax rates for products and services, and streamline processes that support accurate VAT preparation, filing, and remittance / recovery. "While the leading companies are about 32% more likely than their competitors to possess streamlined access to correct tax rates / laws for accurate calculations, the most important difference lies in their ex-ante approach to managing taxes," explains William Jan. "For example: By consistently conducting preparatory audits to ensure readiness for government audits, these top-performing companies are systematically mitigating their risks and reducing audit exposure."

In fact, top companies are 41% more likely than their competitors to perform preparatory audits. Subsequently, these companies reported a 90% positive audit success rate in the past five years."

A complimentary copy of this report is made available due in part by the following underwriters: Thomson Reuters/ONESOURCE and CCH, a Wolters Kluwer Business. To obtain this report, please visit:
http://www.aberdeen.com/link/sponsor.asp?spid=30410182&cid=6867&camp=2

Visit Aberdeen.com for additional access to complimentary Financial Management & GRC Research.

About Aberdeen Group, a Harte-Hanks Company

Aberdeen provides fact-based research and market intelligence that delivers demonstrable results. Having queried more than 30,000 companies in the past two years, Aberdeen is positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen or call (617) 854-5200, or to learn more about Harte-Hanks, call (800) 456-9748.

(C) 2011 Aberdeen Group, Inc., a Harte-Hanks Company
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