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Considerations for a Tax Determination Solution

Considerations for a Tax Determination Solution

Given the current extensive indirect tax revenue gap, it is hardly a surprise that many EU tax authorities have chosen VAT as the starting point for the digitalisation of tax before addressing other tax and accounting treatments. With anticipated VAT losses in 2020 expected to reach €164 billion, tax authorities will only become tougher on business non-compliance with VAT legislation.

Although there is a collective movement to digitalisation across the EU, most tax authorities are focusing on their own digital tax reporting standards and the timeline for transition. It is with these tax complexities across multiple jurisdictions why most companies use some form of indirect tax automation software, to help track and calculate their organisation’s tax obligations.

Whilst many companies are already moving core systems into the cloud, the additional benefit of tax technology is that it can support distributed tax teams and employees, as well as keeping the system updated to support changes in legislation and tax treatments centrally. Meeting digital tax requirements doesn’t just impact your accounting and tax teams - indirect tax reaches across the entire organisation, its processes, transactions and supply chains.

To be successful with the digitalisation of tax, the whole business needs to be engaged and take a considered approach. After all, today’s tax function has a critical role to play in addressing broader challenges, such as driving increased efficiencies and reducing costs.

But such packages are only as accurate as the programming and support behind them. In practice, a team of tax research and technology experts must work 24/7 to keep a comprehensive tax system fully updated. That’s why, after calculating the true costs of global tax compliance, more companies are turning to third-party vendors who specialise in software dedicated to tax compliance.

Tax engine benefits

  • With the right tax engine platform, a business can not only streamline getting the tax calculations right for all the jurisdictions that it needs to report in but also gain a return beyond the tax department.
  • The technology and practices that have been introduced, will benefit all parties by speeding up the process of filing and providing the required granularity of data.
  • A dynamic, efficient, accurate solution will provide frictionless support, freeing up time, resources, and energy that can be dedicated to ensuring the organisation’s future, rather than grappling with mistakes made in the past.

Download this white paper and understand what your business needs to consider to become a strategic enabler by using the right tax engine platform.

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