Tax Transformation’s New and Improved Playbook

⇨ Emerging global trends and disruptions affecting indirect tax.

⇨ Advantages of 3rd party tax software solutions vs. native ERP tax functionality.

⇨ How to build an ROI-centric business case for tax automation.

In an era fraught with geopolitical, social, environmental, and economic risks, the complexity and risks associated with tax compliance are surging, necessitating a strategic overhaul in how organizations approach tax management. This document presents a comprehensive guide to successful tax engine implementations, highlighting the critical role of tax automation in navigating the challenges of fluctuating tax rates, rules changes, and policy-making volatility. By leveraging advanced tax engines, organizations can significantly enhance their ability to manage tax compliance efficiently, reduce risks, and improve strategic planning.

The Vertex guide emphasizes the importance of a well-crafted business plan that evaluates the costs, benefits, and risks associated with tax automation. It provides a detailed framework for assessing the adequacy of existing ERP tax compliance functionality versus the deployment of purpose-built tax engines, considering factors such as tax content scope, customization capabilities, reporting robustness, handling of cross-border transactions, and maintenance requirements. The document underscores the strategic advantages of tax engines, including their ability to provide automatic updates, ensure control and consistency across various systems, support end-to-end tax processes, and facilitate quick reconfigurations to adapt to new business environments.

Beyond the implementation phase, the document explores the strategic benefits that tax engines can offer, including fostering deeper collaborations with business leaders, driving revenue growth, enhancing business agility, leveraging tax data insights, and strengthening tax talent management. By automating manual compliance activities, tax teams can refocus their efforts on value-added activities that contribute directly to the organization’s strategic objectives.

In conclusion, the Vertex document posits that tax transformation is an ongoing journey that requires continuous optimization of tax automation through periodic health checks, integration of complementary applications, and adherence to best practices. By embracing these strategies, organizations can mitigate the impact of external volatility and complexity, elevating their tax functions to new levels of efficiency and strategic value.