Tax Compliance Hazard: Almost 3-quarters of Global Firms Are Playing With Fire
Did you know that 74 % of businesses worldwide are knowingly flirting with indirect tax pitfalls? A recent survey by Vertex, Inc. – the tax‑tech giant – paints a grim picture. The findings have been collected from 580 senior tax decision‑makers in companies raking in at least $50 million a year.
Key Numbers That Should Give Your Head a Small Nudge
- 74 % of respondents admit to a “risk‑prone” stance on indirect tax.
- Only 16 % are tip‑to‑top risk‑averse.
- 10 % sit somewhere in the middle, not leaning either way.
- 62 % of those surveyed were caught non‑compliant by government audits.
- A whopping 84 % of the tax chiefs feel personally at risk because of their company’s indirect compliance score.
Region‑by‑region Breakdown
- United States: 90 % risk‑prone vs 43 % claiming they’re “champions” in VAT.
- Southern Europe (France, Italy, Spain): 56 % risk‑prone; only 29 % feel like champions.
- UK & Ireland: 72 % risk‑prone; 25 % are mourning “crawlers” that drag down compliance.
Why This Matters (And It’s Not Just Nerdy Numbers)
Peter Boerhof, Senior Director of VAT at Vertex, is warned: “If businesses ignore indirect tax, especially in Europe where VAT can shoot up to 27 %, profits and brand reputation can suffer big time. Tax authorities will always catch up, and the financial penalties can be colossal.”
Gunjan Tripathi, Vertex’s EMEA Solutions Marketing Director, adds, “It’s alarming that so many people feel personally exposed by the high risk of indirect tax compliance. From a duty of care standpoint, that’s risky business and deserves serious review.”
Bottom Line – Anything Less Than 100 % Is an Invitation to Trouble
In plain English: Corporate tax teams across the globs are slacking on compliance. They’re treating indirect taxes like a low‑risk hobby, while the stakes are high. The result? Money lost, public reputations tarnished, and the kind of penalties that could push a company into bankruptcy.
Take action today: Don’t be the next “risk‑prone” story on your company’s news ticker. Play safe, stay compliant, and keep your books—and your reputation—purely profit‑friendly.
