This site addresses indirect tax function effectiveness and sets out the ‘Why’, ‘What’, and ‘How’ of managing an effective indirect tax function. Simply put, Indirect Tax needs to be managed because the VAT throughput increases due to increased VAT rates globally. VAT errors – as it is a transactional tax – impact profit margins negatively and could beside tax risks result in commercial and reputational risks as well (see also sections: ‘Why Managing Indirect Taxes‘ and ‘A roadmap to a sound ‘Audit Defense’ Strategy‘).
Beside the ‘Why’ it is important to know ‘What’ needs to be managed within an organization. For change of roles and responsibilities (e.g. governance and mandate) involvement of senior management is essential. From benchmark studies it follows that indirect tax is low on the priority list of senior management.
The question then becomes: what approaches and optimal practice tools are available to change that…
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