KPMG‘s Global Indirect Tax Services practice has been carrying out regular benchmark surveys on indirect tax since 2011, and this year, we have also sought the views of trade compliance professionals, to evaluate how companies around the world are approaching these two critical areas.
Oversight of indirect tax and trade compliance practices and processes is a major challenge. With a lack of harmonization of tax laws, different countries introducing indirect tax at different times, and constant changes to rates, companies need to gain visibility over practices across their worldwide operations, and establish a consistent approach to compliance. Technology is another key factor in automating processes and eliminating errors. Once they have gained mastery over these ‘basics,’ indirect tax heads can start to look at ways to add value to the business.
Global Trade Compliance is about far more than just avoiding penalties for non-compliance. An effective Trade and Customs team is an integral part of the global supply chain, ensuring that goods are cleared quickly and moved to their appropriate destination. Smart planning can bring a number of valuable benefits, such as lowering duty costs by utilizing regional and bilateral free trade agreements, and making use of free trade zones that allow businesses to bring merchandise into a country without paying immediate duties.
The survey findings and this report paint a vivid picture of current practices, which are augmented by expert views from KPMG practitioners who provide insights into potential best practice, and how these two vital functions can add real value to global organizations.