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As the curtain falls on another fascinating, yet challenging, year in the indirect tax industry, it provides an opportunity to reflect on what we’ve learnt over the last 12 months and how recent developments have shaped the way we implement and maintain best-in-class tax solutions.
I’ve been lucky this year to have travelled the world; attending many of the 15 industry events we’ve been a part of across the globe. One of the benefits of this has been the dozens of conversations I’ve shared with some of the market’s most progressive and visionary leaders.
Here are five key trends it’s been impossible to escape at tax technology events this year, what they mean for our industry, and how they will continue to define the years ahead.
Trend 1: The rise of e-invoicingElectronic invoicing - widely referred to as e-invoicing - is the exchange of a digital document between a supplier and a buyer. E-invoices are issued, transmitted and received in a structured data format that enabled automatic and electronic processing. They contain data in a machine-readable format so that an AP system can read an invoice without manual data entry, leading to faster and more efficient invoicing.
E-invoicing has been the big agenda for 2025 – and it will remain so in 2026. Dozens of countries introduced new mandates in 2025, and many more – including Poland, France, Germany and the UAE – are set to follow suit next year.
Back in 2024, you could have been forgiven for seeing e-invoicing as just another compliance obligation. But it’s rapidly become the strategic foundation for modern Tax and Finance teams.
Digital invoices are becoming the primary interface between businesses and tax authorities, presenting both a challenge and an opportunity to enterprising tax professionals.
At Innovate Tax, we believe e-invoicing should enable seamless data flows and drive accuracy at source; meaning your tax data – essential fuel for the delivery of compliant e-invoices – must be complete and correct.
Clients expect solutions that can adapt quickly to evolving local regulations while maintaining a consistent global architecture. Interoperability between systems (including your ERPEnterprise resource planning (ERP) is a type of software that organisations use to manage main business processes. and tax solutions), scalability, and automation are now non-negotiable.
In 2025, advanced analytics and AI are increasingly embedded into e-invoicing platforms, allowing businesses to identify errors, fraud risks, and cash-flow opportunities in real time.
Tax authorities also benefit from improved transparency, meaning they too are finding it easier to identify and punish errors. This makes it essential for businesses to prioritise the quality of their data and its flow between systems.
Ultimately, e-invoicing has become a catalyst for digital transformation; and its reach extends far beyond simply implementing a solution. Instead, every global business must act not only to comply with worldwide mandates, but also to
Trend 2: Tax and IT are joining forces – and it’s a good thing!
One of the most positive shifts in 2025 has been the increasingly close relationship between Tax and IT teams.
Historically, Tax has often operated in isolation, relying on spreadsheets, manual processes, and post-transaction fixes. But the acceleration of digital reporting, e-invoicing, and real-time controls has made that model unsustainable.
This year, we’ve seen Tax move upstream, becoming involved in system design, data architecture, and transformation programmes from day one.
Tax requirements are now influencing ERP configurations, master data governance, and integration strategies, rather than being bolted on afterwards.
Furthermore, we’ve seen the continued rise of the tax technologist and IT actively moving to incorporate their tax counterparts in the conversation at an early stage. IT teams increasingly understand and value the input of tax professionals.
The result is better outcomes for everyone. IT teams gain clarity on regulatory priorities, Tax teams gain access to cleaner, more reliable data, and the business benefits from scalable, future-proof solutions.
Organisations that foster genuine collaboration between Tax and IT are better equipped to respond to regulatory change at speed and with confidence.
Trend 3: What software should you buy? And why?
In 2025, software selection has become less about feature checklists and more about strategic alignment.
With so many solutions on the market, tax leaders are asking tougher questions: Will this scale globally? Can it adapt to new mandates? Does it integrate seamlessly with our existing systems?
We’ve seen a clear shift away from tactical, single-country tools towards platforms that support a broader digital tax strategy and enable cross-jurisdictional tax determination.
Buyers want flexibility, configurability, and comprehensive coverage – not hard-coded rules that struggle to keep pace with regulatory change.
Equally important are vendor partnerships. Businesses are looking for tax technology practices that understand local and global regulations, invest continuously in their product portfolio, and can act as trusted advisors rather than just software sellers.
Implementation speed, ongoing support, and product transparency now matter as much as core functionality.
That’s why we’re so proud of our suite of solutions – including RapidInstall™ that enables us to load a working tax solution in Oracle in a matter of days, as well as our comprehensive Support & Maintenance service.
Trend 4: Global political unease
Political uncertainty has been an unavoidable backdrop to 2025, and the indirect tax landscape has felt its effects acutely.
Elections, trade tensions, fiscal pressures, and shifting geopolitical alliances have driven governments to rethink how they collect revenue, often at speed.
For tax authorities, digitalisation has become a powerful tool to close tax gaps and improve enforcement during uncertain times. For businesses, this has translated into more frequent regulatory change, shorter implementation timelines, and less tolerance for errors.
We’ve seen governments introduce new mandates with limited consultation, adjust VAT rates in response to economic pressures, and accelerate real-time reporting initiatives to gain greater visibility over transactions. The pace of change has challenged even the most mature tax functions.
Future planning and long-term investments have understandably consumed business bandwidth that in more stable times would traditionally be reserved for finance transformation and efficiency projects.
In this environment, agility has become critical. Businesses need systems and partners that can respond quickly, interpret evolving rules, and implement changes without disruption.
Political uncertainty may be out of our control, but preparedness, flexibility, and robust technology are firmly within it.
Trend 5: There’s no getting away from AI
In 2025, AI has moved from experimentation to expectation. What was once seen as an emerging capability is now a core component of modern tax technology, and its influence is only growing.
AI is being used to enhance data quality, automate classifications, identify anomalies, and predict compliance risks before they materialise. In e-invoicing and real-time reporting environments, these capabilities are invaluable, allowing issues to be addressed at source rather than after submission.
Importantly, AI is not replacing tax professionals; it’s augmenting them. By removing manual, repetitive tasks, teams can focus on higher-value activities such as advisory work, strategic planning, and stakeholder engagement.
If you require any support with any of the five trends outlined above, don’t hesitate to contact us today to find out more about how we can help.
