Companies seeking to reduce the cost of the finance function often overlook opportunities for savings in the indirect tax function. The indirect tax function is responsible for accurate and timely reporting of VAT, sales and use tax, and other indirect taxes. In the past decade, the cost of this function has increased due to complexities in the tax and regulatory environment and the impact of globalization on the company’s trading flows and operating models.
 
In many multinational companies the indirect tax function under-utilizes the technology and follows processes that are not standardized and are a result of mergers and acquisitions. The indirect tax function is often decentralized and parts of the function are outsourced. As a result, the function becomes inefficient and the actual cost is either hidden or not understood.