How to put your indirect tax in motion to rise above uncertainty

4 minute read 5 Nov 2020
By EY Americas

Multidisciplinary professional services organization

4 minute read 5 Nov 2020
Related topics Tax

Asking the right questions can help enterprises proactively get ahead of indirect tax. 

As the global marketplace continues to turn and evolve, indirect tax is something all businesses are dealing with, more and more. If it is handled in the right way, the positive impact on your business could be significant.

But for every action, there is a reaction. In an uncertain environment, businesses can’t afford to simply react to events, they have to get ahead of them. As governments move to recoup stimulus funds spent buffering economies during the COVID-19 pandemic, companies are going to find themselves facing huge compliance burdens around indirect tax.

Returning to the basics to proactively manage indirect tax efforts will help businesses avoid costs and penalties. Focusing on the fundamentals and making smart choices in how to organize compliance functions can bring companies through complexities of both indirect tax and, more broadly, the stressors created by the COVID-19 pandemic.

These stressors leave enterprises open to costly and time-consuming tax controversy. But using technology and a concrete control framework can help with navigating compliance and can lessen the chance of controversy risks.

Time is something we all wish we had more of, but enterprises cannot afford to wait to put indirect tax in motion. Businesses globally should prepare themselves to answer these questions:

  • Do you have all the pieces in place for real-time reporting?
  • How can you identify risk areas and keep the wheels turning?
  • Could the way you deal with your indirect taxes be revolutionary?

Summary

It is possible to add value to your company, even through global crisis, by getting ahead of your indirect tax requirements. Asking the right questions can help to develop a proper framework – one that can aid in compliance and help avoid risk. 

About this article

By EY Americas

Multidisciplinary professional services organization

Related topics Tax