Reply: KPI driving indirect tax value

Most global companies keep a close eye on metrics like the effective tax rate to monitor their performance on income taxes. But only a minority of them give the same attention to how they’re performing where indirect taxes are concerned — which is a surprise given the huge amounts of working capital tied up in indirect tax processes.

With tax authorities increasingly shifting their focus to consumption taxes like VAT, businesses are becoming more aware of the need to manage risk and ensure that they have robust indirect tax processes
in place. However, even faced with these challenges, many indirect tax teams may be missing opportunities to prove their value and make the case for investment to improve cash ow, reduce costs, upgrade business processes and manage this risk.

Key performance indicators driving indirect tax value