Most tax authorities have specific requirements around intercompany invoicing as this displays revenue and ultimately taxation.
Virtual Trader handles multi-tier tax structures, such as India and Canada, and utilizes this in producing intercompany accounting. Virtual Trader has tax evaluation capability but also uses web service call technology to integrate with third party tax engines to evaluate and report transactional taxes such as sales tax, VAT and withholding tax.
Virtual Trader retains history of all intercompany transactions produced for statutory audit purposes. Transfer Price Agreements, often using more complex calculations based on General Ledger period balances, produce cross company revenue and thus come under greater scrutiny by the authorities. For these sensitive activities, Virtual Trader retains all the source data and the calculation steps and results to fully satisfy statutory compliance.