Tax engine is a software application which processes transaction data (business data), compute tax rate and tax amount using artificial intelligence. The Tax rate and tax amount is sent back to the ERP system, where it gets published on the line item data of that specific transaction in the ERP system. The Tax engine has many modules (programs) inbuilt the application via which the transactional data flows through and is assessed for tax. Thomson Reuters ONESOURCE Tax Engine, Vertex Indirect Tax, Avalara, Taxware, Sovos are major tax engine available in the market today for indirect tax computation automation at a global scale. There are additional tax software’s, but may be limited to country specific tax computation. Here, in this article we will discuss the operation of global tax engines where tax department can automate tax computations for operations in US, EMEA, APAC regions.
Source: LinkedIn
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