Learn what's stalling tax automation in procurement, and what it takes to close the gaps in compliance, data, and cost control.
A survey of 100 procurement, tax, finance, and IT leaders across the U.S. and Canada paints a clear picture: most organizations are not getting the most out of their tax processes. Manual work, disconnected systems, and limited visibility into indirect taxes are creating unnecessary costs, and most leaders know it.
61% of respondents use automation in tax determination, but more than half of those automate less than 50% of their processes. At the same time, 75% use a procurement system. The gap between these two numbers signals a missed opportunity. Procurement platforms are in place, but tax automation often isn't keeping pace.
The two most significant obstacles respondents cite are making accurate tax calculations for indirect spend (42%) and dealing with integration challenges or legacy systems (33%). These aren't edge-case problems. They affect master data, vendor setup, invoice validation, and general ledger posting: the everyday work of procurement. Nearly half say their current solutions are at least somewhat ineffective at handling master data and vendor setup alone.
The top pain points respondents want addressed are reducing errors from manual entry (46%), cutting manual time spent on data processing (45%), and reconciling disparate solutions across transaction tax requirements (45%). For sales and use tax, VAT, and GST, inaccuracies don't just create compliance risk. They can mean overpaying taxes at scale, with real audit exposure.
Only 23% say they are very satisfied with their current tax solutions. 60% are only somewhat satisfied, and 77% plan to implement a new automated tax technology solution within the next 12 months. The message from respondents is consistent: they want solutions that integrate cleanly with ERPs and procurement platforms, automate more of the tax process, and surface better data for decision-making.
Respondents consistently point to automation as the highest-impact improvement they could make. Beyond technology, the report suggests building stronger supplier and stakeholder integrations, instituting better data governance, and working with third-party consultants to strengthen indirect tax knowledge. Only 41% currently work with an outside consultant, a gap that may be costing organizations more than they realize.
For procurement teams managing complex, multi-jurisdiction tax obligations, this research offers a grounded view of where the function stands and what it takes to move forward.
In this exclusive white paper, find out how procurement can drive tax compliance, and how tax can drive procurement value.
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