Transforming indirect tax departments: Embracing technology and upskilling

Transforming indirect tax departments: Embracing technology and upskilling

A survey aimed to understand the challenges faced by indirect tax professionals in the United States, Canada, and the United Kingdom regarding their tax compliance functions uncovered the following: 

Section 1: Challenges facing indirect tax departments

• Growing complexity of regulatory compliance
• Resource constraints and skills gaps
• Need for efficiency in managing processes and resources

Section 2: Role of technology

• Adoption of AI and automation to improve accuracy and efficiency
• Reduction in manual tasks to free up staff for strategic roles
• Specific technologies, such as AI for automating processes, real-time reporting, and managing e-invoicing compliance

Section 3: Upskilling and strategic focus

• 69% of organizations focus on upskilling their staff
• Training in regulatory changes and technology use
• Shift from preparers to strategic advisors and risk managers

Section 4: Anticipated changes and strategies

• Enhancing indirect tax tech solutions (59% of respondents)
• Developing or acquiring AI capabilities (36% of respondents)
• Focus on recruiting new technology expertise (38% of respondents)

Section 5: Impact on business strategy

• Indirect tax departments becoming integral to strategic decision-making
• Greater involvement in governance, risk management, and business planning

This document is an abridged version of a special report from the Thomson Reuters Institute titled “Challenges and opportunities in indirect tax and compliance.”