Indirect tax

With an unprecedented amount of global indirect tax reform, broadening of global tax bases, and increases in standard tax rates occurring around the world, US multinationals are required to devote greater attention to indirect taxes--including value added taxes (VAT) and sales and use taxes. More than 140 countries have adopted a value added tax (VAT) type regime, also referred to as goods and services taxes (GST) or consumption taxes. With an average rate approaching 20 percent, these taxes represent a significant amount of working capital for US multinationals. Combined with state and local sales and use taxes and federal excise taxes, these indirect taxes can pose significant risk and cash management challenges.

PwC can help. PwC’s Indirect Tax Services team comprises a network of professionals from around the world who specialize in VAT, GST, sales and use taxes, federal excise taxes, telecommunications taxes, and other transaction taxes. Supported by more than 1,900 professionals in local countries as well as members of PwC’s International Tax Services and Transfer Pricing practices, the team provides US-based companies with the global experience required to address our client’s global needs.

Global indirect tax strategy

Let our team can help you with:

• Assessment and risk management: Evaluate where the most significant risks exist that may result in balance sheet adjustments or disclosures
• Business expansion: Understand the local indirect tax regime, taxability of products and services, registration and filing requirements, and potential planning opportunities. Provide support of acquired supply chains and operations
• Mergers, acquisitions, and reorganizations: Identify potential indirect tax exposures and opportunities, whether involving a single country or multiple regions
• Systems, processes, and controls: Assess the effectiveness of a company’s existing framework and implement agreed enhancements
• Refunds and cashflow: Explore opportunities to unlock working capital and secure unrecovered indirect taxes
• Planning for tax reform: Monitor and analyze ongoing indirect tax reform, both internationally and within the United States, in order to provide companies with the opportunity to assess and influence policy effectively