The next generation of automated VAT analysis

At KPMG Acor Tax, we have embraced the power of technologies such as artificial intelligence, process automation and data analytics and created KPMG Advanced VAT Analysis (KPMG 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. 

Intelligent interactions make intelligent solutions

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.

How can KPMG AVA benefit you?

Utilising cutting edge technology by combining data analysis, RPA and predictive analysis to financial processes will increase your business process and control transparency while enabling you to take critical steps towards smart digitisation. 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.

Its main benefits include:

Transparency in and insights into tax compliance

Adopting KPMG AVA will allow you to address your VAT compliance issues with more precision and in a timely manner. It will secure your VAT reporting accuracy and correctness by identifying incorrectly applied VAT that you would otherwise have paid.

Potential business process and control improvements

Having a VAT validation step early in the process will allow you to prematurely identify and address potential VAT challenges and opportunities. KPMG AVA can help you expand your VAT capabilities while enhancing your internal processes and controls, taking you one step closer to new digital delivery models.

Potential earnings and savings on unclaimed VAT

The yearly savings potential can be quite substantial. You can save considerable time and money in identifying accounting errors early in the process, claim retrospective VAT and obtain future VAT savings by not paying incorrectly applied VAT.

Improved efficiency of checking invoices by digitising the process

KPMG AVA is capable of looking through thousands of invoices and predict VAT much faster and with greater quality than if done manually. In addition, having KPMG AVA do the time-consuming task for you will allow your employees to save time and transition from checking invoices to validating the robot’s findings.


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. 

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