Special Report: A Finance Leader's Guide to Global Indirect Tax Compliance

Global indirect tax is getting harder to manage. Over 160 countries operate a VAT or GST system, and there are no universal rules governing cross-border transactions. For finance leaders, that means more complexity, more risk of double taxation, and more pressure to keep up with regulations that change frequently and vary widely by jurisdiction.

Four trends shaping global indirect tax compliance

BDO's Matt Wills and Greg Rosser joined a Vertex-sponsored webcast to walk through what finance teams are up against. Wills identified four trends raising the stakes for compliance. First, the lack of uniformity across VAT and GST systems creates real exposure for companies operating across borders. Second, new registration requirements (like the rules the U.K. introduced alongside Brexit) can catch companies off guard. Third, supply chain disruptions have made it harder for tax functions to keep pace with business changes. Fourth, tax authorities are investing in digital enforcement tools, which means data gaps get noticed faster than before.

Why many companies are still vulnerable

Rosser pointed to a foundational issue: teams often don't share a common definition of indirect tax terms across regions. A word like ""settlement"" can mean something different in Denmark than it does in the U.S. Without shared definitions, identifying and fixing compliance gaps becomes much harder.

Wills also recommends reviewing your tax operating model, specifically your staffing. Do you have the right people in the right roles? And is VAT and GST built into your broader business planning process, alongside technology and finance teams?

How cross-functional collaboration reduces risk

Tax touches every part of the business: purchasing, sales, legal, logistics, and IT. Wills stressed that finance and tax teams need strong working relationships across all of these functions. Inaccurate or delayed data sent to tax authorities can cause supply chain delays in some countries, making this an operational concern, not just a compliance one.

External advisors can also help. Rosser noted that third-party service providers bring a broader view and can identify gaps in indirect tax determination, calculation, and reporting that internal teams may miss.

A poll of webcast attendees found that 63% felt confident in their company's ability to assess and mitigate risks of noncompliance. If you're in that group, this guide helps you stay there. If you're not, it's a solid place to start.