Completing the Transformation Picture: End-to-End Indirect Tax Compliance

The global tax environment is getting more demanding. And more digital. E-invoicing mandates, real-time reporting requirements, and growing VAT complexity mean that indirect tax automation is no longer a nice-to-have. It is a strategic priority.

This white paper brings together perspectives from SAP, KPMG, and Vertex to outline leading practices for building a scalable, end-to-end indirect tax compliance capability within an SAP S/4HANA environment.

Tax is bigger than the tax team

One of the central ideas in the paper is that the tax ""function"" is broader than the tax ""group."" Compliance touches sales, procurement, accounts receivable, accounts payable, and e-commerce (not just the people who report to the tax leader). Recognizing that scope is the first step toward a stronger implementation.

A survey of more than 350 tax, finance, and IT decision-makers found that 55% of respondents cited bad data and incorrect tax calculations as their single biggest pain point. That finding shapes the paper's emphasis on data accuracy, system integration, and cross-functional alignment.

Framing the business case for tax automation

The paper outlines four ways to strengthen your business case for tax automation investment. Visual maps of multi-jurisdictional compliance requirements can make risks tangible for finance leaders. Data analytics capabilities help quantify accuracy and efficiency gains. Collaboration with IT and accounting on ROI calculations builds broader support. And forward-looking projections showing how a solution scales to support growth and emerging regulations resonate with CFOs.

What a strong implementation looks like

Successful SAP S/4HANA tax implementations share common traits. They involve tax teams early and keep them engaged throughout. They gather requirements across the full tax function, including reconciliation, reporting, exemption certificate management, and invoicing, not just tax calculations. They use expert-led, comprehensive testing. And they treat the implementation as an opportunity to educate business partners about tax compliance challenges and process improvements.

The paper also addresses how to frame planning questions around current and emerging regulatory requirements, ERP integration needs, data management, and IT support efficiency. This gives tax, finance, and IT teams a practical checklist to work from together.

Alignment is the competitive advantage

The conclusion is straightforward: implementation success depends on coordinated effort. Tax, finance, accounting, and IT teams need to move together. They benefit from working with partners like Vertex, SAP, and KPMG who bring deep experience in end-to-end indirect tax compliance. When those relationships are aligned, the transformation picture becomes a lot clearer.