LONDON, Feb. 12, 2024 (GLOBE NEWSWIRE) -- According to research conducted by
Vertex, Inc. (https://www.vertexinc.com/company/about-
us?utm_source=press_release&utm_medium=web_wire&utm_campaign=2021PressReleases)
(NASDAQ:VERX) ("Vertex" or the "Company"), a global provider of tax technology
solutions, businesses in the U.S. believe they are outperforming other regions
with their current indirect tax capabilities.
Vertex surveyed 580 indirect tax decision makers (representing global companies
with annual revenue of at least $50 million) and asked each to categorise
themselves according to their indirect tax performance, ranging from 'champion'
(best) to 'crawler' (worst).
43% of U.S. organisations marked themselves as 'champions', meaning their
business is protected and future-proofed with an efficient technology led
approach. The U.S. took the lead in the champion category, whilst in contrast,
UK and Ireland businesses were deemed to be 'crawlers', with 72% describing
their business as being risk-prone to managing indirect tax compliance.
Peter Boerhof, Senior Director of VAT for Vertex's Chief Tax Office, commented
on the findings: "When looking at the regional differences, it's clear that the
champion regions have adopted tax technology to help address current challenges
in their compliance strategy. 77% of U.S. respondents believe that specialised
engines and software simplified the compliance process, and 81% feel well
equipped to make tax digital. It's not surprising that numerous U.S.
organisations have adopted tax technology to address the complexity of their tax
landscape as they must contend with more than 19,000 taxing jurisdictions and
indirect tax rates and rules."
"But compare that to one of the biggest 'crawler' regions, the UK, and we can
see that 38% of respondents here believe the biggest gap in their compliance
strategy is not having the correct technology in place," Boerhof shared.
Across Europe, there are numerous drivers causing businesses to take a more
cautious approach to managing indirect tax compliance. This includes the arrival
of the VAT in the Digital Age (ViDA) proposal, continued digitisation of the
regulatory landscape and ever-changing VAT rules and rates.
As a result, businesses across many parts of Europe feel well-equipped to handle
upcoming or existing mandated e-invoicing rules (77% in DACH, 77% in Italy and
70% in France).
Additionally, businesses in this region feel well-equipped to handle changing
VAT registration rules with 93% of Spanish businesses stating this, closely
followed by Italy (83%) and DACH (79%).
Looking specifically at the DACH region, the largest proportion of respondents
marked themselves as 'calculators', with 39% of businesses admitting they take a
more calculated and considered approach to indirect tax compliance.
Of the DACH-based organisations which had been found to be non-compliant in the
past, over half (56%) state that this was financially material for their
business, whilst for Italian businesses 54% state the same.
In the UK and Ireland, a quarter (25%) of respondents considered themselves to
be 'crawlers', which is more than US (14%), DACH (19%) and Spanish (17%)
businesses, which suggests that indirect tax compliance is slowing down
operations for businesses here.
The survey indicated that a lack of skills and talent within tax departments is
not only an issue for business globally, but particularly for those in the UK
and Ireland, with over a third of respondents here (36%) saying this is the
biggest gap in their capabilities for managing indirect tax compliance.
The adoption of tax technology solutions has also played a role in separating
'champion' regions from 'crawler' regions.
Gunjan Tripathi, EMEA Director for Solutions Marketing at Vertex, added:
"Adopting the right tax technology for your business is an important step, but
there needs to also be a clear focus on further education and developing IT
skills within tax teams so that they can implement and manage this technology."
"There are signs that businesses are ready to make this commitment. Almost half
of our global respondents (49%) believe they will be more compliant with
indirect tax by 2030, and 56% of UKI businesses echo this, which paints a more
hopeful picture for the future," noted Tripathi.
The full findings of the research can be found via this link
(https://www.vertexinc.com/en-gb/campaign/tax-compliance-research-
report?utm_source=Skout_PR&utm_medium=content_syndication%20&utm_campaign=202311
_EU_Skout_PR_Tax_Compliance).
About the research
The survey was conducted with 580 professionals who have influence on decisions
around indirect taxes in companies with an annual revenue of at least $50
million, from Belgium, Netherlands, DACH, Nordics, Spain, France, Italy, UK,
Ireland and the U.S.
At an overall level, results are accurate to ± 4.1% at 95% confidence limits
assuming a result of 50%.
The interviews conducted online by Sapio Research in June 2023 using an email
invitation and an online survey.
About Vertex
Vertex, Inc. is a leading global provider of indirect tax solutions. The
Company's mission is to deliver the most trusted tax technology enabling global
businesses to transact, comply and grow with confidence. Vertex provides
solutions that can be tailored to specific industries for major lines of
indirect tax, including sales and consumer use, value added and payroll.
Headquartered in North America, and with offices in South America and Europe,
Vertex employs over 1,400 professionals and serves companies across the globe.
For more information, visit www.vertexinc.com (https://www.vertexinc.com/en-
gb) or follow on Twitter (https://twitter.com/vertexinc/) and LinkedIn
(https://www.linkedin.com/company/vertex-inc./).
Copyright © 2024 Vertex, Inc. All rights reserved. The information contained
herein is intended for information purposes only, may change at any time in the
future, and is not legal or tax advice. The product direction and potential
roadmap information is not a guarantee, may not be incorporated into any
contract, and is not a commitment to deliver any material, code, or
functionality. This information should not be relied upon in making purchasing,
legal, or tax decisions. The development, release, and timing of any features or
functionality described for Vertex's products remains at the sole discretion of
Vertex, Inc. Any statements in this release that are not historical facts are
forward-looking statements as defined in the U.S. Private Securities Litigation
Reform Act of 1995. All forward-looking statements are subject to various risks
and uncertainties described in Vertex's filings with the US Securities and
Exchange Commission ("SEC") that could cause actual results to differ materially
from expectations. Vertex cautions readers not to place undue reliance on these
forward-looking statements which Vertex has no obligation to update.
Press enquiries:
James Weaver
Skout PR for Vertex, Inc.
james.weaver@skoutpr.com (mailto:james.weaver@skoutpr.com)
(mailto:james.weaver@skoutpr.com)+44 1625 869 418
Company contact:
Rachel Litcofsky
Vertex, Inc.
mediainquiries@vertexinc.com (mailto:mediainquiries@vertexinc.com)
Investor Relations contact:
Joe Crivelli
Vertex, Inc.
ir@vertexinc.com (mailto:ir@vertexinc.com)
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