Case Study: How Tax Technology Gains the Trust of Specialists

Marosa, a member firm of Praxity, shows how early adoption can pay dividends

With the increased integration of digital and AI tools to reduce compliance burdens, tax technology is playing an important role. Support in developing the technical knowledge to leverage this can be hugely valuable. Creating robust, trustworthy measures that are easy to use, Spanish firm Marosa’s VAT and E-invoicing software makes trans-European compliance easier, lowering man hours and increasing value for their clients.

Reasons for Action

AI use and technology is on the rise industry-wide; however, many accountancy firms do not have the technological knowledge to set up new VAT systems without support. VAT and E-invoicing rules vary widely across jurisdictions but must be obeyed to remain compliant; this is especially true in the geographically small, interconnected countries of Europe. Many hours are spent on painstaking work, which might be better used elsewhere.

Solutions

Designed and built in-house by the firm, Marosa’s VATify software is a comprehensive data analysis and VAT reporting software, enabling businesses to comply with e-invoicing and tax obligations globally. The software automates the process of creating VAT returns from digital accounting platforms, allowing Tax specialists and Accountancy firms to preserve capacity and focus on value-added activities. This also removes the likelihood of manual errors or the need for external consultants. However, the solution is fully flexible and Marosa can offer hands-on support when necessary.

Challenges

The first requirement of any tax technology is that it does its job properly; the data must be robust and trustworthy, and it must solve more problems than it causes. The detailed work that any software is designed to replace must still be overseen by knowledgeable tax experts, as any compliance irregularity is understandably a huge problem. It is also key that the software work smoothly and does not cause too many IT problems within a business, which may create choke points that use up capacity rather than freeing it up. Finally, and most importantly, “more” is not necessarily “better” and this extra capacity must remain of the same high quality.

Results

The VATify software has to date helped Tax specialists, accounting firms and multinational entities handle the complex and labour-intensive work of VAT compliance, in multiple jurisdictions. It is also a perfect model for digital services businesses, who are selling intangible goods to a widely distributed customer base.

Adam Seidle, Head of Sales, Marosa:

“With one piece of software, specialists can stay compliant globally, while freeing their professionals to perform higher-level tasks for their clients. This not only keeps costs lower; it also creates capacity for them to pursue leads, create strategies and innovate new solutions themselves. The tool also enables multinational businesses to have peace of mind, without the need to hire further consultants.”

Future Developments

Some firms are understandably hesitant to adopt technology wholesale, needing to see how robust and useful the tools are first.

As tax technology and artificial intelligence become increasingly mainstream, early adopters such as Marosa will be able to prove the use case of their tools over a long period. Being able to show clients how their solutions work in the real world is a huge advantage, as promises from AI have sometimes proved rather different from results.

Clearly having a computer tool to perform some of the more time-consuming work frees talented professionals to perform, giving their clients more value. Having digital tools that are demonstrably fit for purpose will continue to give both Tax specialists and their clients confidence going forward.