In recent years, artificial intelligence (AI) has emerged as a game-changer across various industries, including finance and taxation. For indirect tax departments, the rise of AI isn’t just a technological advancement; it represents a shift that is reshaping the way tax professionals operate. Thomson Reuters, a leader in providing tax technology solutions, after cloud hosting has started integrating AI to enhance the efficiency, accuracy, and adaptability of indirect tax departments. This transformation, however, requires tax professionals to adapt, upskill, and embrace new ways of working.

The Need of AI in Indirect Tax Departments-

Indirect taxes—such as VAT, GST, and sales tax—are becoming increasingly complex due to evolving regulations, globalization, and digital transformation. The traditional methods of managing these taxes, which involve manual processes and outdated software, are no longer sufficient to keep up with the fast-paced changes.

• AI automates repetitive tasks, improves compliance, and reduces errors, allowing tax professionals to concentrate on more important strategic work.
• The urgency to adopt AI in the indirect tax domain stems from the need for businesses to stay competitive and compliant.
• Governments are switching to digital tax systems and real-time reporting. This change puts pressure on tax departments. They need to stay updated and compliant.
• AI-powered solutions like those offered by Thomson Reuters application allow businesses to navigate these challenges efficiently, reducing the risk of penalties and audits.

The Rise of AI in Indirect Tax Departments-

The adoption of AI in tax technology is not a distant future concept; it’s happening now. Thomson Reuters has been at the forefront of this movement, integrating AI into its tax products to streamline tax processes.

• AI can quickly analyze large data sets, find patterns, and make predictions, helping to manage indirect taxes more effectively.
• For instance, Thomson Reuters’ ONESOURCE Indirect Tax app solution uses AI to automate tax determination, filing, and compliance processes.
• Tax professionals can use AI to calculate tax rates accurately. They can also apply exemptions and file returns on time. This technology saves hours of manual work that would otherwise take up valuable time.
• AI also enables real-time updates to tax rules and regulations, ensuring that businesses remain compliant with the latest laws.

Are You Ready? Why Tax Professionals Need to Upskill for the AI Era-

As AI becomes an integral part of the indirect tax process, tax professionals must embrace the change and upskill to stay relevant.

• Tax professionals today need to know more than just tax laws. They also need to understand technology like tax app hosting on cloud, AI and automation tools.
• This shift requires a commitment to continuous learning and development.
• Thomson Reuters tax app hosting recognizes this need and provides resources and training to help tax professionals upskill. By mastering AI-powered tools, tax professionals can enhance their productivity, accuracy, and value to their organizations.
• Upskilling isn’t just about learning how to use new software; it’s about understanding how AI can be leveraged to make better decisions and drive more strategic outcomes for the business.

The Future Tax Expert: Why Mastering AI is Key to Staying Ahead-

The tax professional of the future is one who excels in technology. AI will NOT replace tax professionals but will empower them to do their jobs better and more efficiently.

• By embracing AI, tax professionals can automate routine tasks, reduce errors, and gain insights that were previously out of reach.
• For example, AI can help tax professionals analyze historical tax data to identify trends and patterns that may impact future tax liabilities. This predictive capability allows tax departments to be more proactive in their tax planning and decision-making.
• Additionally, AI can assist in risk management by flagging potential compliance issues before they become problematic, helping businesses avoid costly audits and penalties.

How AI Saves Time and Effort? A Real Success Story!

Scenario: Consider a global manufacturing company that operates in multiple countries, each with its own complex indirect tax rules. Before adopting AI-powered solutions, the company’s tax department struggled with manually calculating and filing taxes in each jurisdiction. This process was time-consuming, error-prone, and left the company vulnerable to non-compliance penalties.

Solution: After implementing Thomson Reuters’ AI-driven ONESOURCE Indirect Tax solution, the company automated its tax determination and filing processes across all its locations. The AI system automatically updated tax rates and rules based on the latest regulations, reducing the burden on the tax department. As a result, the company significantly reduced the time spent on tax compliance, improved accuracy, and minimized the risk of audits.

How AI Will Shape the Future of Indirect Tax Departments with OneUp Networks?

The future of tax departments lies in the hands of technology-savvy professionals who leverage AI to drive efficiency and accuracy. As businesses continue to digitize with tax app hosting and governments introduce new tax regulations, the need for AI-powered tax solutions will only grow. By embracing AI, tax professionals can position themselves as strategic partners within their organizations, driving better business outcomes.

At OneUp Networks, we understand the importance of staying ahead in this rapidly changing landscape. That’s why we offer secure and reliable hosting for Thomson Reuters applications. By hosting your Thomson Reuters products like UltraTax with OneUp Networks, you can ensure that your tax technology operates seamlessly in the cloud, allowing you to focus on leveraging AI to transform your indirect tax department.