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      Our digital solution: KPMG AVA

      The next generation of automated VAT analysis

      At KPMG Acor Tax, we have embraced the power of technologies such as AI, process automation and data analytics and created KPMG Advanced VAT Analysis (AVA). With this solution, you can now go through 100,000 invoices per hour with a 97% accuracy in predicting invoices that are booked wrongly or invoices that could be subject to special clauses or VAT treatments, amongst other things.

      With KPMG AVA, our ambition is to offer the best-in-class service to our clients by integrating and utilising different technology elements into one product. This way, you will get complete insights into your challenges, while our tax and technology experts will provide you advice on solutions that will keep you aboard the technology train.

      The power of AI within VAT

      KPMG AVA is a digital assistant capable of identifying incorrectly handled VAT as well as treatments and assignments on invoices. It can assist you in securing VAT reclaims of incorrectly booked invoices that you are entitled to by predicting transactions with VAT that have been posted as VAT exempt or 0% VAT.

      KPMG AVA is an intelligent interaction between different advanced technologies that are racing from the labs to the front line. The solution combines:

      • Data analytics to identify the relevant transactions and invoices for further analysis
      • Robotic process automation (RPA) to interact with your ERP system and download the invoices of interest
      • Predictive analysis to read the invoices, document text across them and predict which of them include what we are looking for
      • Human validation to secure the accuracy, correctness and completeness of the prediction.

      With KPMG AVA, you will be able to look through all invoices, automatically assess if VAT is booked correctly and identify incorrect postings to reclaim VAT historically.

      Advantages of using KPMG AVA:
      • Potential earnings and savings on unclaimed or incorrectly applied VAT
      • Transparency in and insights into VAT compliance
      • Enhancement of VAT reporting accuracy and internal processes
      • Time efficiency
      • Early identification of VAT challenges and opportunities
      Get in touch
      Martin and Mette

      AVA client case

      • The situation

        KPMG Acor Tax VAT team approached a Danish international company with the suspicion that 1-5% of their invoices that had been booked as VAT exempt or 0% VAT had in fact VAT and with the right to VAT deduction. An historical approach was taken, and 120m financial transactions were analysed in a combination of efforts between our Tax Technology and Indirect Tax teams.

      • The solution

        Data analytics was applied to identify all the relevant transactions where the incorrectly booked invoices could have occurred. Then, a software robot was purposefully created to interact with the company’s ERP system and automatically lift the relevant information from the invoices. Finally, predictive analysis was applied to identify which invoices posted as not having VAT were most likely to have VAT. The prediction was ultimately validated and reported by our VAT experts. 

      • The success

        By applying KPMG AVA to this process, the company was able to identify a significant amount of reclaimable VAT, leading to considerable earnings and savings. All this in a much shorter time frame than what had been possible through manual work. In the end, 11,000 transactions with VAT exemption or 0% VAT were identified, where DKK 11m were directly claimable. 

      Martin Henri Leth With
      Martin Henri Leth With

      Partner, VAT, Customs & Excise Duties

      KPMG Acor Tax in Denmark

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