Vertex Inc. reports shift in indirect tax compliance management

Vertex Inc. has released findings from two independent studies involving over 2,100 executives from large enterprises, highlighting a shift in how companies manage indirect taxes and compliance. The research identifies a move toward a ‘Decision-to-Defense’ era, where tax and regulatory requirements must be integrated into every individual transaction in real time.

The studies highlight two reinforcing challenges: ‘Defensibility Drift’ and ‘CompOps Drag’. Defensibility Drift refers to the increasing gap between making a tax decision during a transaction and the ability to prove and defend that decision to authorities later. According to the data, 58 percent of companies face highly complex indirect tax audits, 45 percent struggle with regulatory changes, and 80 percent are only prepared for audits through significant manual effort.