Overcoming indirect tax hurdles in the race for growth

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Overcoming indirect tax hurdles in the race for growth

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Join Vertex in London and learn how businesses can ensure the opportunity for global growth.

ITR reports on a survey of tax and finance professionals that highlights an increasing awareness that businesses cannot expand without a corresponding increase in tax obligations and considers the potential solutions.

Indirect tax requirements are creating a direct threat to the growth of companies that trade cross border. As organisations aim to capitalise on the opportunities that eCommerce offers, their tax registration, reporting and filing responsibilities increase.

A survey of 730 tax and finance decision makers by Vertex, a global provider of indirect tax software, offers an insight into how firms are responding. Join Vertex’s free follow-up event in London, which will address how businesses can ensure the opportunity for global growth is not hampered by indirect tax management challenges.

Opportunities for expansion

Companies are increasingly capitalising on globalisation through expanding their eCommerce offerings as they diversify products and open new routes to market. The Vertex survey reports that 68% of businesses have traded with more international customers in the past two years and the majority of respondents view digital channels as a key growth opportunity.

A frictionless customer journey through omnichannel retailing is an essential part of that growth.

Indirect tax challenges

Cross-border digital sales create financial challenges. More than 100 countries require VAT registration, and the regulations are prone to change. Indirect tax challenges therefore increase in parallel with geographical diversity, and 54% of the respondents to the Vertex survey believe indirect tax complexity puts growth at risk.

The survey and accompanying event pinpoint these challenges, report how they are being handled, and identify where improvements can be made.

Tax software

Firms are employing a variety of methods to meet the challenges, such as using an accounting firm, a specialist tax managed service provider, in-house tools, and a third-party indirect tax engine.

The survey indicates a recognition that specialist tax technologies reduce errors, provide better data, and enable resources and development time to be spent on growth activities instead. Indeed, 76% of respondents find specialist software efficient.

As an example of tax transformation using software, the Vertex event will hear from Momentive, the experience management company formerly known as Survey Monkey, on how Vertex’s advantage product has met its international tax compliance obligations. As the organisation grew, Momentive needed to adapt to the digital services tax compliance obligations under the BEPS framework. Vertex helped to remove indirect tax challenges and introduced a scalable process that could be integrated to work alongside existing systems.

Vertex eCommerce event

The half-day event on November 15 2022, on ‘Indirect tax for eCommerce global growth’, will provide more details on how frictionless eCommerce and global expansion can be supported, with speakers from Vertex, Momentive, and Zuora, the subscription management software company. There will also be a panel session dedicated to digital services, and a networking lunch.

Register here to find out more at the Vertex event.

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