How digital tax reporting simplifies compliance

A robust tax reporting system isn't just an efficiency tool. It's the foundation that lets your business operate across borders without constant worry about penalties, unexpected fees or business disruptions.

By automating tax calculations and reporting workflows, you reduce human error while creating the transparency that both tax authorities and business partners now demand.

Let's explore how digital tax reporting simplifies global compliance, minimizes risk, and frees your team to focus on strategic work. Through Thomson Reuters' acquisition of Pagero, we now offer a complete solution covering every aspect of your tax journey: determination, e-invoicing, and reporting.

At its core, a tax reporting system ensures your company determinates and reports taxes correctly — paying the correct amount at the right time according to each jurisdiction's rules.

The system first gathers all relevant transaction data — sales volumes, product types, locations — creating a solid foundation of accurate information for tax determinations.

It then applies the appropriate tax rules and rates for each country — a complex task given how frequently these change. Finally, it helps submit reports in the correct format and within the required timeframes.

Should tax authorities audit your company, a sound system makes it easy to trace, explain, and verify every step of your tax process — showing exactly how calculations were made and demonstrating full compliance.

Tax reporting systems dramatically reduce risk while giving you greater control. Instead of manually researching VAT rates for specific countries or products, you get a continuously updated system with accurate information that guides you through proper reporting formats and deadlines.

For indirect taxes like VAT, regulations are notoriously complex and vary significantly between countries and product categories. Digital tax reporting is particularly valuable here, as incorrect handling quickly leads to costly mistakes, audits, or operational delays.

With a proper system, you'll experience fewer errors, less manual work, and smoother interactions with tax authorities. It also simplifies compliance with real-time reporting requirements — increasingly common in countries where transactions must be reported as they happen rather than periodically. Let the system handle the details, so your team doesn't have to.

Direct tax is paid directly by the person or company liable for it — like income tax or corporate tax. The cost cannot be transferred to anyone else; it's borne solely by the taxpayer.

Indirect tax is levied on goods and services, such as VAT. Consumers don't pay this tax directly to authorities; instead, companies add it to prices, collect it, and then remit it to the 
government. The consumer ultimately bears the cost through the price of goods or services.

ONESOURCE is a comprehensive tax reporting platform that helps companies manage both direct and indirect taxes globally. It's designed to address the full spectrum of requirements — from maintaining correct tax rates to reporting in the proper format at the right time to the appropriate authority.

By combining all aspects of tax reporting, ONESOURCE eliminates the need for different solutions across different markets or tax types.

This isn't just about efficiency — it's about security. Imagine always staying ahead of regulatory changes without constant monitoring. ONESOURCE helps you maintain compliance in every jurisdiction you operate without building an internal team dedicated to tracking legislative changes.

Why juggle multiple systems when you can have everything in one place? One of ONESOURCE's most significant advantages is its end-to-end coverage — from calculation to reporting and audit. Instead of separate systems for VAT calculation, invoice delivery, and authority reporting, ONESOURCE brings everything together. This not only streamlines processes but reduces the risk of compliance gaps.

The system also adapts to your company's size and needs. Whether you operate in five countries or fifty, ONESOURCE scales accordingly.

ONESOURCE makes tax reporting both easier and more secure. The platform tracks laws and tax rates, automates calculations and reporting, and ensures you're always audit-ready. Whether managing VAT in Sweden or sales tax in California, ONESOURCE provides a comprehensive solution that reduces complexity while saving time and resources.

The system automates and secures every aspect of your tax management, regardless of location:

Whether you're entering a new international market or expanding existing operations, ONESOURCE provides security and control at every step.

For companies already using Pagero for e-invoicing, the transition is simple. Just add ONESOURCE to complete your compliance chain without changing platforms.

For new customers, ONESOURCE offers a comprehensive solution from day one — everything you need to handle taxes internationally in a user-friendly system.

Want to see how it works and how much easier your workday could be? Book a demo and discover how to take control of your entire tax process — from transaction to approved report.