Beta 1

Title VAT legislation modeled in array-based logic
Author Lützhøft, Mads
Ørding-Thomsen, Martin
Supervisor Falster, Peter (Algorithms and Logic, Department of Informatics and Mathematical Modeling, Technical University of Denmark, DTU, DK-2800 Kgs. Lyngby, Denmark)
Institution Technical University of Denmark, DTU, DK-2800 Kgs. Lyngby, Denmark
Thesis level Master's thesis
Year 2008
Abstract Determining whether VAT is due for a business transaction is difficult due to complicated rules and exceptions. Thus, if the accounting program used could suggest the VAT to use, the users would benefit. Accounting programs today can do this to some extent but there is much room for improvement. We have created a VAT model that, given trade parameters, can determine whether VAT should be applied and at which rate. Further, legal justification for the choice is returned, along with possible textual notices relevant to the trade. The model also provides feedback about unused variables to the program using it, for possible use in the user interface, as well as having functionality for warning about illegal trades. Further, the model contains a diverse selection of rules, enables rule reuse between countries, and fulfills requirements for performance and size. A proof of concept program using the VAT model has been implemented. Microsoft calls the VAT model a value-adding feature for accounting systems such as Dynamics NAV, and adds that the implementation delivers enough for a proof-of-concept. The model is data-driven, built on array-based logic. We used configuration software from Array Technology to create and use the array model. If a model like ours were to be commercially successful, improvements must be made to these tools, and we describe these upgrades.
Series IMM-M.Sc.-2008-74
Original PDF ep08_74.pdf (1.90 MB)
Admin Creation date: 2008-08-18    Update date: 2008-08-18    Source: dtu    ID: 222484    Original MXD