Strategic Shifts

Why tax technology can no longer wait

Indirect tax compliance is more complex than ever. US sales and use tax changes have hit a 10-year high. Expanding into new global tax jurisdictions adds more compliance risk. And many ERP systems simply don't have the tax calculation capability organizations need. Relying on manual processes to close those gaps is no longer sustainable.

This white paper from Vertex and PwC explores how emerging technologies (including AI, machine learning (ML), and generative AI (GenAI)) are reshaping the way tax teams work. The insights come from Michael Bernard, Vice President and Chief Tax Officer at Vertex, and Kaveeta Patel, Director of Indirect Tax Operations at PwC.

From tactical to strategic: rethinking what tax teams do

When routine tasks like data collection, reconciliation, and compliance reporting are automated, tax professionals gain time for higher-value work. Instead of applying tax regulations manually, teams can analyze the impact of regulatory changes, identify tax optimization opportunities, and advise key stakeholders. That shift repositions the tax department from a cost center to a strategic partner within the enterprise.

GenAI is already helping teams summarize documentation, draft routine controversy responses, and standardize tax requirements. ML supports anomaly detection and streamlines reconciliation across multiple data sources. Compliance software pre-loaded with regulatory content updates automatically, making it faster and safer to expand into new jurisdictions.

Cloud technology supports this transformation, too. Cloud-based platforms enable real-time collaboration and seamless data sharing. These capabilities became critical when remote work accelerated during the pandemic.

Technology as a talent strategy

The accounting profession has lost nearly 340,000 professionals in recent years. Newer talent has options, and a manual-heavy tax role is a hard sell. Tax departments that invest in modern technology, reducing repetitive work and creating room for strategic, analytical roles, become more attractive to tech-savvy candidates. A strong tax tech stack is now part of a competitive recruitment and retention strategy.

What to consider before you start

Adopting new technology requires more than choosing the right tools. The paper outlines how to build a clear value proposition for stakeholders across IT, Finance, and Operations. It also covers why tax teams should be involved early in any ERP implementation or upgrade, and how bolt-on tax engines with standard integrations reduce reliance on IT while keeping the tax team in control of tax determination.

There is no one-size-fits-all approach. Organizations need to assess the complexity of their indirect tax function, their operating model, and their growth plans before selecting a path forward. Collaboration with ERP providers, consulting partners like PwC, and system integrators is often key to a successful implementation.