Automating VAT compliance: Necessity of automation  

At ELEVATE 2026, one message came through loud and clear: VAT automation is no longer optional.  

In this session, Automating VAT compliance – necessity of VAT automation, industry experts Michael Welner (SAS Institute), Tobias Rausch (WTS), and Máté Szimilko (Fintua) shared practical insights from the front lines of global VAT compliance. 

From messy data and manual processes to co-sourcing and AI readiness, the discussion mapped out what automation really looks like in practice and why businesses can’t afford to delay. 

Why VAT automation is no longer optional 

For many organisations, automation starts as a response to complexity. 

As Michael Welner, SAS, explained, global expansion often exposes inconsistencies: 

• Multiple ERP systems 

• Fragmented processes across entities 

• Lack of standardisation 

For SAS, moving to a single global ERP system was the catalyst. But the real driver went beyond technology: 

“When we talk about automation, we’re not just talking about technology upgrades. It’s changing the way we do business and the way we operate globally. It brings consistency, it standardises how transactions are captured, validated and evidenced, which in turn leads to better VAT compliance.”

Layer on increasing regulatory pressure, especially around digital reporting, and the shift becomes unavoidable. 

Key takeaway: 

Automation isn’t just a tech upgrade. It’s a foundational step toward scalable, compliant global operations. 

From manual effort to meaningful work 

Both Tobias and Máté reflected on a familiar starting point: spreadsheets, copy-paste and repetitive manual work. 

It’s a reality many tax professionals still face. 

But that model is quickly becoming outdated. 

• Manual work is inefficient 

• Clients won’t pay for it 

• It limits the value tax teams can deliver 

Automation changes that dynamic. Instead of spending time processing data, teams can focus on: 

• Interpreting complex VAT rules 

• Reviewing transactions 
• Providing strategic input 

“The role shifts from data processing to tax evaluation – that’s the main value add as a tax provider you can provide.” 

Key takeaway:

Automation doesn’t replace tax professionals, it elevates them. 

The evolving role of the tax function

As automation increases, the role of indirect tax teams is expanding in two key ways: 

1. From operators to analysts:

Tax professionals are no longer just preparing returns – they’re validating, analysing and advising. 

2. From users to collaborators:

Teams must now work closely with IT and systems teams to: 

• Shape data structures 

• Define requirements 

• Ensure accurate outputs 

This shift is critical in an environment where eInvoicing, real-time reporting and ViDA are reshaping compliance expectations. 

Key takeaway: 

Tax is becoming both a strategic and technical function.

Data is the foundation of successful automation

One theme came up repeatedly: automation is only as good as your data. 

Poor data quality leads to poor outcomes – no matter how advanced the technology. 

Common challenges include: 

• Missing VAT IDs 

• Incomplete fields 

• Inconsistent formats 

• Fragmented data sources 

Or as Tobias put it: 

“Garbage in, garbage out.” 

The reality is fixing data isn’t always straightforward. While the ideal approach is to fix issues at source, Máté highlighted a more practical reality:

• Tax teams often don’t control master data 
• Changes can take months (or years) 

So what’s the work around?

• Identify recurring issues (often ~80%) 

• Apply automated rules and logic 

• Bridge gaps until source data is improved 

Key takeaways:

Perfect data isn’t required to start but understanding and managing data gaps is essential.

Co-sourcing: Scaling expertise and efficiency

Another major theme of the session was the role of co-sourcing in modern end-to-end VAT compliance. 

For global organisations, it offers: 

• Consolidation under one provider
• Access to local expertise 

• Improved visibility across jurisdictions 

• Increased efficiency and scalability 

As Michael noted:

“We don’t have the ability to learn every VAT rule in every country around the world – co-sourcing fills that gap.” 

Tobias added that co-sourcing acts as a multiplier, especially for under-resources tax teams juggling multiple responsibilities. It also enables: 

• Better integration with internal processes 

• Reduced manual communication 
• Streamlined workflows 

Key takeaway: 

Co-sourcing is a strategic extension of the tax function, not just for support.

Practical advice: How to start your automation journey?

So where should businesses begin? 

Michael outlined a clear, structured approach: 

 1. Stabilise 

•  Fix data issues 

• Map processes 

• Ensure accuracy 

2. Standardise 

• Define minimum VAT data requirements 

• Align reporting structures 

3. Automate 

•  Focus on predictable, repeatable processes first 

• Start with pilot countries or use cases 

4. Optimise 

• Continuously refine as regulations and systems evolve 

Don’t underestimate change management 

Tobias highlighted a critical and often overlooked factor: people. 

Automation requires buy-in from the teams doing the work. 

• Change can be uncomfortable 

• Processes are hard to let go 

• Communication is essential 

Key takeaway:

Máté reinforced that AI is coming to our job rather than for our job and offered a pragmatic approach: 

• 80% of processes can often be automated with 20% of effort 

• The remaining complexity can be tackled over time or with partners 

Final thought: Just get started

The session closed with a simple but powerful message: Start now. 

Whether it’s: 

• Reviewing your data 

• Running a pilot on a few countries you’re struggling with

• Exploring automation tools 

• Engaging a co-sourcing partner 

With eInvoicing mandates, ViDA and real-time reporting on the rise, automation is quickly moving from optional to essential. It’s vital that we move to being proactive rather than reactive and starting early is key.

Watch on-demand

Ready to move from manual to automated VAT compliance?

At Fintua, we help businesses bridge the gap between fragmented data and fully automated compliance, without waiting for perfect conditions. 

If you’re still relying on spreadsheets, now is the time to take the first step.