Report
How are organizations keeping up with tax compliance for manufacturers, and how does yours compare?
Sovos and Aberdeen Strategy & Research conducted a study to better understand key issues and approaches to sales and use tax compliance across the U.S. manufacturing segment. This research included interviews with tax professionals from 150 U.S.-based manufacturing companies.
Ensuring sales tax compliance is essential for manufacturing organizations to minimize regulatory risks, increase operational efficiency and enhance profitability. Below are the top takeaways on how the U.S. manufacturing industry is evolving, current sales and use tax challenges and potential solutions for manufacturing businesses.
Knowledge brief highlights include:
- The complexity of tax compliance has increased. When we asked manufacturers how the complexity of managing tax compliance has changed in the past two years, 69% said it increased due to changes in regulation and internal technology advances.
- Audit volumes are expected to rise. Nearly ninety percent of responding manufacturers have been audited in the last year, and almost half expect the number of audits to increase further in the next two years.
- It’s time to move to the cloud. 87% of respondents are planning to move to a single, standardized cloud-based application. This transition aims to improve the accuracy of returns, reduce costs and ensure timely filing.