Indirect Tax Jobs

Market context

Indirect tax refers to taxes levied on consumption rather than income or profits, typically collected by an intermediary (e.g., a business) from the final consumer and then remitted to the government. These taxes include Value Added Tax (VAT), Goods and Services Tax (GST), Sales and Use Tax, and various excise duties.

Globally, indirect tax rates and structures vary significantly. The EU operates a harmonized VAT system (e.g., standard rate in Germany is 19%), requiring quarterly or monthly filings depending on turnover, administered by national tax authorities. In the US, Sales & Use Tax is state and local-driven, with rates ranging from 0% to over 10% (e.g., Los Angeles County combined rate is 9.5%), necessitating thousands of jurisdiction-specific filings. India introduced a unified GST (central GST, state GST, integrated GST) in 2017 with rates like 5%, 12%, 18%, and 28%, requiring monthly or quarterly GSTR-3B filings through the GSTN portal. LATAM countries primarily use IVA (Impuesto al Valor Agregado), with rates such as 19% in Chile.

Regulatory timeline

• 2023-10-01India GST Council's decisions on online gaming and specific servicesImplemented
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• 2022-2024General increase in VAT/GST rates in several countries due to inflation/economic pressuresOngoing
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• 2022-12-08EU VAT in the Digital Age (ViDA) ProposalProposed
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• 2021-2024Introduction of specific e-invoicing mandates in various LATAM countries (e.g., Chile, Colombia, Mexico)Ongoing
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Skills & tools