Global Indirect Tax Complexity: Staying Ahead of Compliance

VAT compliance has never been more demanding. Rules change constantly. E-invoicing mandates are multiplying worldwide. The EU's VAT in the Digital Age (ViDA) proposal promises one of the most sweeping overhauls of indirect tax compliance in decades. And the pace of change is only accelerating.

Four forces driving today's complexity

This white paper breaks down the four dimensions that make global VAT compliance so difficult to manage. Requirements are ever-changing, with country-specific rules and enforcement intensity shifting frequently. They are unharmonized, with no consistent standard across jurisdictions. Impact is uneven: organizations with complex supply chains or cross-border transactions face far greater compliance burdens. And the entire landscape is on the verge of transformation, as digital reporting and prefilled tax returns reshape how companies interact with tax authorities.

KPMG's global e-invoicing team tracked more than 400 changes to e-invoicing requirements in a single year. That is a signal of just how fast this environment moves.

Signs your current tax technology may not be enough

For many organizations, native ERP tax functionality works well within a single country or VAT regime. But when that functionality struggles to keep rates and rules current, creates delays when entering new markets, or forces tax and IT teams to spend excessive time on manual updates, it may be time to evaluate a dedicated tax engine. Integrating purpose-built indirect tax software with your ERP helps improve calculation accuracy, reduce audit exposure, lower overpayments, and free your team to focus on higher-value work.

Building a business case that gets approved

Investing in tax automation requires a clear and compelling argument. The white paper outlines how to quantify ROI through efficiency gains, risk reductions, and the elimination of manual processes. The most persuasive business cases connect tax technology directly to growth: accurate compliance speeds up mergers, acquisitions, and IPOs, while tax errors can slow a deal or reduce its value. Overcharging tax can even drive customers away.

Once investment is approved, execution matters just as much. Getting tax professionals involved early in ERP integration projects (not as an afterthought) reduces costly rework. Thorough testing of tax IDs, file layouts, and report formats helps surface problems early, before they become expensive to fix.

Who this paper is for

This paper is written for tax, finance, and IT leaders responsible for indirect tax compliance across multiple countries. If you are evaluating whether your current technology can scale with regulatory demands, or preparing to make the case for a tax engine investment, the guidance here gives you a practical framework to move forward.

Contributing insights come from experts at Vertex, KPMG, and Workday.