Indirect tax life cycle video series
Deloitte’s broad-based approach to indirect taxes
Precise indirect tax planning is a business advantage. But today’s ever-changing tax landscape brings new challenges for companies looking to comply with indirect tax requirements. Deloitte simplifies these complexities by taking a broad-based approach to indirect taxes. This big-picture methodology helps companies evolve from a reactive process to a proactive one so indirect tax compliance is consistently achieved.
Watch the videos below to better understand the different phases of the indirect tax life cycle and the benefits of Deloitte’s expertise, technology, and special approach to indirect tax.
Nexus, classification, taxability, and sourcing
Do you understand your nexus, sourcing, and taxability positions?
You should.
In 2018, the Supreme Court’s landmark ruling in the Wayfair case immediately changed the tax landscape forever. Many states quickly passed new legislation—each having different thresholds for determining economic nexus as well as different marketplace facilitator statutes. This led to massive confusion for businesses selling in different states—especially for technology-based cloud companies and those selling digital services and products.
Deloitte has specialists who focus on nexus, classification, taxability, and sourcing to achieve indirect tax clarity and, if necessary, remediation.
Rick is a managing director in the Technology, Media & Telecommunications practice of Deloitte Tax LLP. He leads the US Indirect Tax Consulting group and is the Indirect Tax Technology sector leader.
Principal | Deloitte Tax LLP
kgulotta@deloitte.com +1 212 436 3202Kirsten serves as the US Indirect Tax practice leader and has more than 15 years’ experience performing indirect tax services on behalf of complex, high-tech, and multi-jurisdictional companies.
Compliance
Accuracy saves money. That’s why we’re 100% focused on it.
At its highest level, transaction tax compliance is timely and accurate reporting of sales and use tax along with any other transaction-based taxes. One of the biggest challenges in compliance is the quality of the data and underlying tax calculations, which make all the tax payment decisions. Having inaccurate data can, and usually will, result in an overpayment or underpayment of tax.
Deloitte’s innovative technology—which includes data wrangling, data analytics, robotics, machine learning, and other custom tools—streamlines the compliance process, which promotes the timeliness and accuracy of the filings. This enables companies to identify and assess challenges proactively instead of always being in reaction mode.
Brian is a partner in the Multistate Tax practice of Deloitte Tax LLP and leads Deloitte’s US Indirect Tax Compliance Center of Excellence, which assists clients with preparing and filing sales and use tax and transaction tax returns.
Principal | Deloitte Tax LLP
kgulotta@deloitte.com +1 212 436 3202Kirsten serves as the US Indirect Tax practice leader and has more than 15 years’ experience performing indirect tax services on behalf of complex, high-tech, and multi-jurisdictional companies.
Exposure and remediation
Expertise in each and every tax jurisdiction matters. See why.
Sometimes organizations find that even after they’ve figured out their nexus profile, determined which purchases and sales are taxable, and have put compliance processes in place, there may still be instances of exposure, as in not remitting enough tax to a specific jurisdiction.
Remediation begins with Deloitte specialists. They have deep industry experience and are very familiar with each state tax department’s process and procedures to not just address current issues but stop future errors from happening.
Marcy is a tax principal in Deloitte’s Multistate Tax Services Practice. She has over 27 years of experience as a tax professional in public accounting, the energy industry, and government.
Principal | Deloitte Tax LLP
kgulotta@deloitte.com +1 212 436 3202Kirsten serves as the US Indirect Tax practice leader and has more than 15 years’ experience performing indirect tax services on behalf of complex, high-tech, and multi-jurisdictional companies.
Process review
Don’t just fix a problem; fix the process.
For some companies, indirect tax can be somewhat of a blind spot. Unfortunately, this can lead to possible risk, exposure, and inefficiencies.
A Deloitte process review is a good way to help these companies unpack their process and understand what it is, who’s responsible for each piece, what risks and potential opportunities exist, and how to improve from start to finish.
A streamlined process often results in reduced or mitigated exposure as well as potential reductions in tax overpayments on a go-forward basis. It can also free up resources to focus on more value-added areas.
Kathy is a managing director with Deloitte Tax LLP and part of the Indirect Practice in the Multistate Tax Services Group. She has more than 25 years of public accounting experience working in state and local taxation.
Principal | Deloitte Tax LLP
kgulotta@deloitte.com +1 212 436 3202Kirsten serves as the US Indirect Tax practice leader and has more than 15 years’ experience performing indirect tax services on behalf of complex, high-tech, and multi-jurisdictional companies.
Reverse audit
Experiencing recurring overpayments? Here’s the solution.
Organizations can spend billions of dollars across dozens of tax jurisdictions on products and services that are vital to operations—such as computer hardware and software. This leads to a tremendous amount of indirect tax data, and it can be difficult for organizations to know if they are overpaying or underpaying their taxes.
Deloitte uses a broad-based approach by leveraging AI machine learning to analyze a wide range of transactions—not just the largest ones. Deloitte also provides insights to remedy taxability issues moving forward.
David is a tax principal in the Chicago office of Deloitte Tax LLP and leads Deloitte’s National Multistate Reverse Audit practice. He has extensive experience in federal and state tax planning, as well as applying cognitive and data-wrangling technologies in the indirect tax space.
Principal | Deloitte Tax LLP
kgulotta@deloitte.com +1 212 436 3202Kirsten serves as the US Indirect Tax practice leader and has more than 15 years’ experience performing indirect tax services on behalf of complex, high-tech, and multi-jurisdictional companies.