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Top Reasons Businesses Are Changing Their Sales Tax Processes in 2025

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The sales tax landscape is constantly evolving, and businesses must adapt to keep pace. But tax laws aren’t the only things changing—businesses themselves are growing, diversifying, and seeking new ways to streamline their operations. According to our latest survey of over 100 finance professionals, 85% of businesses are at least somewhat likely to adjust how they manage sales tax in 2025, with 47% being very likely to make changes.

These insights come from our latest eBook, which explores the survey results in detail and highlights key trends shaping the future of sales tax management.

The top three reasons that respondents are looking to change their sales tax processes in 2025 are:

1. Increased Business Complexity

Adding complexity (new products or services) to their business operations in 2025 – As businesses grow and expand their product and service offerings, they encounter new obligations that require additional expertise. New products and services often come with unique tax rules that can vary by state, country, or even city. Managing these changes manually or with outdated systems can lead to errors, compliance risks, and inefficiencies. As a result, companies are seeking solutions that can adapt to their evolving needs and ensure compliance across multiple jurisdictions.

2. A Need for More Guidance and Expertise

Looking for more guidance, expertise, and education – Many businesses don’t have experienced sales tax professionals within their organization. Without proper expertise, organizations may struggle to determine the correct tax rates, exemptions, and filing requirements. As a result, businesses are actively looking for more guidance, education, and expert insights—whether through automated solutions, outsourcing, or professional consultation—to ensure they remain compliant and avoid costly mistakes.

3. A Time-Consuming Process

Current process is time-consuming – Pointing out that even those who thought they were automating it all, still have a time-consuming process that can be a major pain point that pushes businesses to seek better solutions. From tracking tax rate changes to filing returns across multiple jurisdictions, sales tax compliance can be incredibly burdensome. Companies are increasingly frustrated with the inefficiencies of their current systems and are looking for ways to simplify and streamline their processes.

What Are Businesses Looking for Instead?

Survey respondents said their top sales tax management priorities for 2025 were all about understanding, protecting, and improving data and its ability to impact business decisions. The top three business priorities listed were:

1. Ability to assess the impact of business decisions, allowing for a more strategic approach. Businesses want the ability to analyze how tax obligations affect their overall strategy. By having clearer insights into the sales tax implications of new markets, product expansions, or pricing changes, companies can make more informed and strategic business decisions.

2. Data Protection
In an era where data security is paramount, businesses are placing a high priority on protecting sensitive tax-related information. Ensuring compliance with data protection laws and safeguarding customer and financial data from breaches are crucial concerns.

3. Improving Data Visibility and Reporting
Companies are looking for tools that provide comprehensive, real-time tax reporting and analytics. Having better visibility into sales tax liabilities and trends allows businesses to stay compliant, reduce errors, and optimize financial planning.

The Bottom Line

Sales tax management is no longer just a compliance necessity—it’s becoming a strategic business function. As companies navigate increasing complexity, the demand for expert guidance, time-saving solutions, and enhanced data-driven decision-making will only continue to grow.

Is your business prepared for the changes ahead? Now is the time to assess your sales tax processes and explore solutions that can help you stay ahead in 2025 and beyond.

For a more in-depth look at our survey findings and expert insights, download our full eBook today and gain access to the data and strategies you need to navigate the evolving sales tax landscape.

Disclaimer: This story is auto-aggregated by a computer program and has not been created or edited by finopulse.
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