Meridian enables INEOS Business drive to improve VAT compliance and process efficiency

For INEOS, the Meridian VAT Add-on for SAP was an effective solution, as its functionality and design met our objectives.

Ineos has chosen Meridian’s VAT determination as an add-on to SAP
Client

INEOS

Solutions used

VAT Add-On

Background

Based in London, INEOS is a privately owned, global manufacturer of petrochemicals, specialty chemicals and oil products, with $60 billion in annual sales. It comprises 34 businesses each with a major chemical company heritage. Its production network spans 183 sites in 26 countries throughout the world.

INEOS had a customized solution for Value-Added Tax (VAT) treatment that was developed to cope with its complex business model. This served INEOS well over the years, but the business wanted to move to a solution that was better suited for the future, was less dependent on IT resources, and could cope with a continuously changing environment.

Categories
  • Chemicals

Before: Tax challenges for INEOS

  • 1

    Manual processes

    Expensive and time-consuming manual processes to determine VAT compliance

  • 2

    Costs

    High costs associated with validating Accounts Payable (AP) data manually.

  • 3

    Errors

    Wrong user inputs led to wrong conclusions with the old tax solution

  • 3

    Migration to to S/4 Hana

    They also needed a solution that could be implemented in the existing SAP ECC environment and then be migrated

Why Meridian?

  • For INEOS, the Meridian VAT Add-on for SAP was an effective solution, as its functionality and design met our objectives. If we had to build in this automation from scratch, it would have been a significantly longer and a significantly more expensive project.
  • Also, the Meridian solution meets our objectives in terms of being easily technically scalable. We implemented initially on ECC and can transition to S4 HANA. During this process, it was also an assurance that the Meridian solutions were fully certified by SAP at each stage of the process.
Why Ineos selected Meridian tax technology for SAP

After : Value driven results and improvements in tax efficiencies

The Meridian VAT Add-on has enabled INEOS to greatly reduce manual intervention in the SAP system. The out of the box automation has also greatly reduced development costs.
Easily discover new tax cases

New tax cases are discovered easily and can be handled by the tax department

Setup special tax cases

Easy set up of special tax cases through table entries maintained by the tax department

Correct VAT codes

AT code for incoming invoices especially from other EU or foreign countries is proposed correctly

Improved tax compliance

In general better results for tax compliance

``For the first time, we now have a system that handles all our European and INEOS specific complexities in a compliant and automated fashion. This includes: special licence flows, circle-outtransactions, domestic reverse charge, indirect exports (including managing indemnity letters), VAT warehouses, bonded flows, and specific out-of-scope transactions.``
Carine Nijhoff European Tax Manager INEOS Styrenics