How cloud solutions change the game for tax professionals

Artificial intelligence (AI) and cloud services have firmly established themselves in the tax technology landscape. Understanding which technology trends will endure versus those with uncertain futures is essential for tax professionals navigating this rapidly evolving environment.
Redefining indirect tax
Process improvement is a given, and automation is music to the ears of any tax professional. However, the profound transformation brought about by generative AI (GenAI) and cloud services to indirect tax functions marks a new chapter.
Since the launch of ChatGPT, numerous AI solutions have emerged in the market from established vendors and new entrants alike. Many professional services firms are actively exploring GenAI technology to assess its potential for research automation and workflow enhancement. Despite this momentum, several challenges remain:
- Legacy systems lacking integration capabilities
- Traditional, manual processes
- Loss of process documentation due to staff turnover
Embracing process improvement requires an open mind to change.
How generative AI enhances indirect tax functions
GenAI and automation bring significant advantages when teams are willing to evolve their workflows:
- Anomaly detection: As VAT or customs codes are entered, any mismatch against source data triggers a real-time prompt for verification, allowing professionals to confirm or correct entries immediately.
- Certification verification: Upload thousands of products and watch the system instantly assign correct VAT or duty classifications.
- Exception certification management: Upload certificates which are then automatically analysed, data fields extracted, applied appropriately to tax codes, and reported seamlessly.
The goal of deploying GenAI is to automate repetitive tasks and ensure precise compliance reporting. With fewer manual interventions, tax professionals gain time to focus on strategic insights and advisory roles.
Forrester Consulting’s Total Economic Impact report on Thomson Reuters ONESOURCE Indirect Tax reveals automation reduces reporting errors by over 75%, saving millions in
Cloud solutions for tax professionals
Cloud-based tax technology enables operational efficiencies and faster implementation. For organisations unable or unwilling to maintain their own data centres, third-party cloud solutions often prove more cost-effective and reduce cybersecurity risks.
However, some firms remain cautious about relinquishing control beyond their firewalls. Christian Jensen, Technology Specialist at Thomson Reuters, notes anxiety around uptime responsibility when direct oversight is removed.
To address this, hybrid models like edge computing have been introduced.
Edge computing explained
Edge computing—also known as cloud and on-premises hybrid solutions—brings processing power closer to the data source, reducing latency and enhancing performance. This is vital for businesses handling large data volumes requiring real-time precision.
For example, retailers and wholesalers can calculate VAT or customs duties at the point of sale or import while remaining connected to a broader cloud tax engine that automatically updates classifications, tax rates, and e-invoicing rules.
Such technology is critical as governments mandate tighter reporting deadlines and real-time tax declarations. Edge computing ensures compliance and security standards continuously within a near-touchless process, reducing pressure on tax teams.
Christian Jensen explains, “Real-time anomaly monitoring via dashboards and alerts means less time spent deciphering complex tax codes and more on strategic business initiatives.”
Future-forward operations with edge computing
The convergence of edge computing and 5G networks will enable unprecedented real-time processing capabilities. This allows organisations to deploy tax solutions anywhere, achieving truly distributed operations.
Christian views edge computing as today’s leading pre-emptive technology, with quantum computing on the horizon, set to revolutionise tax technology further as solutions evolve and companies re-assess their strategic and financial frameworks.
Indirect tax professionals face a career-defining opportunity
Even if your department still relies on Excel or legacy systems, the inflection point has arrived.
Picture your indirect tax processes as a vessel navigating turbulent seas. Rising tides of government reform, real-time reporting mandates, and GenAI automation are crashing against the hull. Efforts to manually bail out water are no longer enough; the challenges are mounting like a tidal wave.
To survive and thrive, it’s essential to rethink your navigation strategy, repair weaknesses, and harness innovation to ride the waves of transformation.
The pace of change in indirect tax surpasses analogue processes, which is acceptable because solutions exist to stabilise your operations and enable you to sail confidently regardless of external pressures.
Planning for change and reducing technical debt
Transparent, real-time reporting demands process improvements and automation to remain compliant and competitive.
The cost of upgrading tax technology is known as technical debt. While not inherently negative, delaying investment only increases its burden over time, similar to compounded financial debt.
The key is to proactively address it. Whether you are searching for the right automation tools, exploring how GenAI reshapes tax roles, or identifying the best cloud solution, resources like the 2025 Corporate Tax Technology Report from Thomson Reuters Institute are invaluable. This guide helps organisations evolve from reactive to proactive tax technology maturity.
Using solutions such as Thomson Reuters® ONESOURCE Determination empowers organisations to transform indirect tax management, achieving better compliance, efficiency, and strategic capability to address todays and tomorrow’s tax challenges.
![]() |
|