Written by: James Edington – Vice President, Transaction Tax
Tax departments are under more pressure than ever. Evolving regulations, increasingly complex business models, and heightened scrutiny from taxing authorities mean that indirect tax is no longer just about filing returns—it’s about managing risk, ensuring accuracy, and enabling strategic growth. Yet many tax teams find themselves under-resourced, stretched thin, and bogged down in compliance activities that leave little room for strategic focus.
It’s no surprise that more organizations are making the decision to outsource significant portions—or all—of their indirect tax function.
Companies Are Turning to Outsourcing
Across industries, businesses are recognizing that maintaining an in-house indirect tax function is no longer sustainable. The burden of compliance is increasing, and the expertise, technology, and staffing required to keep pace are becoming harder to secure internally.
Outsourcing provides a reliable path forward—delivering specialized skills, advanced tools, and consistent processes that many companies cannot efficiently replicate on their own. It addresses many of the issues tax departments face, such as:
Complexity Across Jurisdictions
Indirect tax requirements differ drastically across states, provinces, and countries. Companies operating in multiple jurisdictions face a constant challenge of staying compliant. Outsourcing provides access to specialized expertise without the cost and difficulty of building it in-house.
Resource Constraints
Recruiting and retaining skilled tax professionals is harder than ever. Outsourcing relieves that pressure, giving companies a dedicated team that manages compliance, reporting, and process improvements—freeing in-house staff to focus on higher-value strategic work.
Technology Demands
The days of manual compliance are over. Tax engines, automation, and data analytics are essential. Outsourcing partners bring both the technology and the know-how to configure, maintain, and optimize these systems.
Cost Efficiency
Outsourcing eliminates the overhead of hiring and training a full in-house tax department, while also reducing the risks of errors, penalties, and missed recovery opportunities.
Outsourcing More Than Just Compliance
While the drivers are clear, the real value comes into focus when looking at what outsourcing delivers day-to-day. Beyond simply shifting compliance tasks, outsourcing transforms indirect tax into a function that is more accurate, more efficient, and more strategic by providing:
- Risk Mitigation: Expert preparation and review reduce the chance of penalties and audits.
- Scalability: Outsourced solutions flex as the business expands, restructures, or enters new markets.
- Visibility and Control: Contrary to the fear of “losing control,” outsourcing can provide greater transparency through dashboards, reporting, and client portals.
- Strategic Value: By offloading compliance, in-house teams gain the freedom to focus on growth initiatives, mergers and acquisitions, and long-term planning.
Why DMA Is the Right Partner
When companies outsource their indirect tax function, they expect accurate filings, timely payments, and audit readiness. Many providers stop there—treating compliance as little more than a back-office necessity.
DMA takes a different approach. We recognize that compliance doesn’t begin at filing—it begins at calculation—and the greatest risks and inefficiencies often occur upstream. That’s why DMA outsourcing services cover the entire compliance lifecycle.
Our outsourcing model ensures that every step is addressed:
- Tax Calculation: Configuring and maintaining tax engines, verifying rates, and aligning nexus coverage.
- Review, Adjustment, and Reconciliation: Performing in-depth analysis and reconciliations before returns are filed, reducing costly errors and adjustments later.
- Data Extraction: Managing large datasets and multiple systems with automation and validation to streamline reporting.
- Filing, Payment, and Audit Readiness: Completing the traditional compliance steps with confidence that the underlying data is accurate and defensible
By outsourcing to DMA, companies gain more than a compliance provider—they gain a strategic partner. One that brings deep tax expertise, industry-leading technology knowledge, and proven processes to every stage of the tax cycle. The result is reduced audit risk, stronger visibility, and a tax function that not only stays compliant, but also drives business forward.
The Future of Indirect Tax
Outsourcing isn’t just about cost savings. It’s about transforming tax into a source of strength, resilience, and strategic value. As tax regulations grow more complex and enforcement intensifies, businesses that partner with our experts gain the confidence that every aspect of their indirect tax function is managed with precision and foresight.
INDIRECT TAX DONE RIGHT
Discover how DMA can transform your indirect tax function—schedule a consultation today.