Value Chain Alignment (inc Customs & GTA)

Aligning a multinational’s operating and business model with its global tax strategy is an important element of profitability and shareholder value. Yet, doing so is challenging given ever changing laws and regulations affecting how companies manage and report tax, and increasingly unpredictable disruptions to supply chains. Deloitte Tohmatsu’s Value Chain Alignment (VCA) services can assist with these challenges and support business transformations. We can assist leaders in understanding the tax implications and options available to them, helping capture value created from the business transformation as leaders seek to harmonize business strategy, tax strategy, and operational risks.

A holistic approach to Value Chain Alignment

Deloitte Tohmatsu’s VCA methodology begins by analyzing your organization’s operating model, including key business processes and location of key assets and personnel; information systems; and tax and legal structure. Deloitte Tohmatsu teams will identify opportunities in the business model analysis phase, including preliminary tax and operational impacts, that business leaders can review against their business strategy.

When a deeper VCA project is appropriate, phase 2 is a design phase when Deloitte Tohmatsu specialists and business leadership work together to develop a detailed, tax-efficient operating model. Depending on the value chain opportunity identified, this may include realigning supply chain components, reconfiguring technology systems, readying workforce models, and reorganizing tax and legal structures to support the prioritized future state operating model. Typically, we will collaborate with you to use data analytics, advanced modeling, and artificial intelligence to assess and reconcile supply chain transformation decisions to current tax policies.

With the new design in hand, Deloitte Tohmatsu teams remain available to support implementation and adoption of processes, helping to monitor the performance and sustainability of your operating model.

Creating resilient, tax-efficient supply chains

As part of the VCA review, we can analyze the tax implications of VAT; global trade; transfer pricing standards; and the tax liability arising from various sales channels. A typical outcome is the strategic alignment of supply chain components so that functions and risks reside where they add value from a tax perspective. This can affect physical assets like inventory, manufacturing facilities, and personnel, as well as intellectual property (IP) and intangibles.