White paper
Managing indirect tax in the financial services industry
Many organizations in the financial services industry face specific challenges in determining indirect tax. Such challenges often arise due to:
- An elevated level of purchase activity with IT and software
- Heavy advertising expenses
- Managing processes across a wide nexus footprint
Of additional concern, companies in this industry are often under an elevated level of scrutiny and need all processes to be highly documented and controlled. While such businesses traditionally faced little sales tax complexity — as a result of their services being categorized as exempt from sales tax — we see this dynamic changing as tax authorities seek out additional revenue streams by continually expanding the number of services deemed taxable.
This white paper discusses areas that are particularly difficult for the tax departments of financial services organizations to maintain control over and stay highly accurate within.