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Kozi Checks & Balances TaxTactics News

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August 13.2025

2 Minutes Read

How Indirect Tax Transformation Drives Embracing Technology

Business team discussing indirect tax transformation strategy.

The Landscape of Indirect Tax: Navigating Change with Technology

In today’s fast-paced world, indirect tax professionals are continuously adapting to shifting regulatory environments and the latest technological advancements. Recent findings from the Thomson Reuters Institute reveal crucial insights into this evolution, highlighting a significant transformation in tax teams around the globe.

Spotlight on Automation: Embracing New Technologies

The rising complexity of regulations is compelling tax teams to embrace technology like never before. By 2025, it’s estimated that 74% of indirect tax spend will be on technology solutions, a marked increase from 65% in 2024. Moreover, the interest in AI tools among tax departments has surged from 28% to 42%, signaling a clear trend toward automation.

The Challenges Indirect Tax Teams Face

While new technologies provide opportunities for efficiency, they also introduce new challenges. From 2024 to 2025, Oxford data management concerns jumped from 28% to 34%, and the struggle for report accuracy rose from 25% to 39%. These statistics underscore the operational strains on tax professionals navigating the complexities of their roles amid changing demands.

The Importance of Upskilling

As the landscape shifts, upskilling has become essential. Tax professionals must equip themselves with the capabilities to utilize emerging technologies effectively. With 88% anticipating further AI integration in their teams within the next few years, ongoing education will empower professionals to leverage these tools for enhanced productivity.

Future Trends: Predicting the Path Ahead

Looking ahead, the amalgamation of technology and regulatory compliance will likely continue to reshape the indirect tax function. Training programs focusing on technological proficiency, aligned with regulatory understanding, will be crucial for future success. The transition won't just enhance compliance; it will transform how tax teams operate, enabling them to thrive amidst change.

Call to Action: Taking the Next Step

As you reflect on these insights, consider how your organization can invest in technology and training to strengthen your indirect tax function. Embracing this transformation is not just about keeping up with regulations; it's about driving innovation and resilience in your organization.

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08.14.2025

Navigating Indirect Tax Transformation: Embracing Change and Technology

Update Understanding Indirect Tax Transformation In an era marked by rapid technological advances and shifting regulatory landscapes, indirect tax transformation is not just a trend—it's a necessity. As tax professionals find themselves adjusting to increasing demands and complexities, particularly in multinational corporations, the call for embracing change resonates louder than ever. According to the latest data from Thomson Reuters Institute, the landscape of indirect tax is evolving, highlighting significant shifts and challenges faced by tax teams worldwide. Key Drivers Behind the Changes The survey data from 2024 and 2025 reflects a notable increase in the focus on technology and automation, which surfaced alongside regulatory compliance issues as the foremost challenges for tax professionals. There has been an astonishing jump in anticipated spending on tax technology, escalating from 65% in 2024 to 74% in 2025, marking a pivotal moment for tax teams. Additionally, the percentage of departments exploring artificial intelligence (AI) tools has risen to 42%, indicating a strong willingness to innovate. While the implementation rate of AI has seen only a modest increase, a significant 88% of tax teams foresee more AI integration within the next five years. This reveals an undeniable momentum towards embracing technology in pursuit of improved operational efficiency. The Reality Faced by Tax Professionals Moreover, tax departments in the UK, U.S., and Canada are experiencing mounting operational pressures. A stark rise in challenges associated with process improvements surged from 28% to 40% in just one year, according to reports from the Thomson Reuters Institute. This suggests that professionals in the indirect tax field must adapt to an increasingly complex environment while ensuring compliance with evolving regulations. The Growing Need for Upskilling As tax teams scramble to keep pace with these rapid changes, a clear trend emerges: the necessity for upskilling and nimbleness within the workforce. Embracing modern technologies and committing to continual learning will be key for tax professionals aiming to not merely survive but thrive amid the challenges ahead. Upskilling their teams will provide an essential strategic advantage, allowing tax professionals to navigate the landscape's complexities more adeptly. Looking Ahead: What’s Next for Indirect Tax? Ultimately, the future of indirect tax lies in a seamless blend of technology and human expertise. Innovation will become a crucial lifeline for tax professionals, as the need to tackle the growing intricacies of global regulations becomes ever more pressing. By understanding these transformations and engaging with emerging technologies, tax teams can transform obstacles into opportunities, positioning themselves for success in a dynamic future. For those involved in global indirect tax functions, staying informed and adaptable is not just advisable—it is essential. The journey through this transformation will require dedication, creativity, and collaboration to ensure straightforward compliance processes while leveraging innovations for enhanced viability.

08.12.2025

Navigate Your Options: The Best Tax Software for Preparers

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08.09.2025

How Will the 2025 Undertaxed Payments Rule Increase Compliance Complexity for MNEs?

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How Indirect Tax Transformation Drives Embracing Technology

The Landscape of Indirect Tax: Navigating Change with Technology

Spotlight on Automation: Embracing New Technologies

The Challenges Indirect Tax Teams Face

The Importance of Upskilling

Future Trends: Predicting the Path Ahead

Call to Action: Taking the Next Step

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