Strategy Why You Need to Pay More Attention to Indirect Taxes in 2019Three key trends that are shaping value-added and sales taxes. For more insight, read “It Pays to Keep Tabs on Indirect Taxes.” December 21, 2018 Share to: Share on Twitter Share on LinkedIn Share on Facebook Email this article Why You Need to Pay More Attention to Indirect Taxes in 2019Three key trends that are shaping value-added and sales taxes.The Growing Importance of Indirect TaxesAlthough the world tends to focus on direct taxes, such as corporate income tax, destination-based indirect taxes are being used more and more to generate additional revenue: value-added tax (VAT), general sales tax (GST), customs, and excise duties can make up more than half of the tax revenue many governments raise. Managing the effects of indirect taxes on business performance requires both an understanding of the emerging global trends and a clear strategy, though the speed and scale at which countries around the world are announcing changes to their indirect tax systems is giving even the biggest and best-resourced businesses a serious headache.Trend Two: Additional Taxation of the Digital EconomyHow to collect the correct VAT/GST in the context of modern supply chains, cross-border trade, and the Internet remains unclear. As online marketplaces and intermediaries are increasingly being held jointly responsible for the VAT/GST due on transactions on their platforms, companies need to be able to track their customers’ sales or risk getting caught out.Trend Three: Increased Emphasis on VAT/GST Compliance and ReportingThe speed and magnitude of business development has exposed glaring holes in some VAT/GST systems that governments are desperately trying to close. In addition, these systems are susceptible to instances of fraud, owing to the fact that suppliers are in a position to collect tax from customers and then disappear without having delivered the customers’ tax to the relevant authorities. As a result, many governments around the world are taking unilateral administrative measures to assert greater control over their national VAT/GST systems, while exchanging more data more often between governments. Recommended stories Value-creating chief data officers: Cementing a seat at the top tableIn PwC’s second Chief Data Officer Study, we found more chief data officers appointed by the world’s leading companies—and evidence they’re having a positive impact on financial performance.by Rebecca Chandler, Marcus Hartmann, Tatiana Kulminskaya, Matthias Schlemmer, and Andy Wisnia Green taxes and incentives can help businesses achieve ESG goalsUnderstanding the impact of new policies and programs empowers companies to accelerate decarbonization and boost the bottom line. by Barry Murphy and Niels Muller Carbon taxes and the green transitionEpisode 7 of the Take on Tomorrow podcast features Danae Kyriakopoulou, from the Grantham Research Institute on Climate Change and the Environment, and Ian Milborrow, a sustainability and climate-change partner with PwC UK.