Simplifying global tax compliance in 2025: How automation is reshaping finance teams

Global tax compliance is becoming more and more complex, which is a particular challenge for growing SMEs looking to take that next step overseas. With changing politics, trade deals and tariffs, you can be forgiven for scratching your head over it all.  

But there is good news: you don’t have to face tax chaos alone. With a partner such as Thinc and tools from Avalara, automation can take the stress out of compliance and give your finance team its valuable time back. 

Let’s look at the risks that come with manually managing your taxes, the global shift to e-invoicing, what solutions and expertise can help, and what your next steps should be to aid your expansion overseas.  

The hidden risks of manual tax compliance 

Manual tax compliance isn’t just a hassle – it’s a growing liability for finance teams. In fact, according to Sage, 83% of finance leaders regularly report burnout, as much of their time consumed by repetitive admin tasks and navigating shifting regulations. It’s no surprise, then, that the cost of tax compliance in the UK alone hit £15.4 billion in the last financial year, according to the National Audit Office. 

The risks of sticking with outdated, manual methods are significant. Filing errors, missed deadlines and inconsistent processes can trigger costly audits, penalties and reputational damage. As businesses of all sizes expand across borders, the complexity multiplies. For SMEs in particular, it’s a struggle, as already stretched resources are met with the complexities of global tax compliance.  

Let’s consider these complexities in a bit more detail from the perspective of a UK-based SME. Two markets that are of great interest – Europe and the US – aren’t exactly straightforward. European VAT rules differ by country and require different filing schedules, while registering for local VAT post-Brexit has become a significant challenge. Meanwhile, the US presents an entirely different maze again – with over 13,000 tax jurisdictions and more than 250,000 changes to tax rates and rules in just the past year alone. 

For UK SMEs trying to grow efficiently and compliantly, these challenges create serious pressure. It’s clear that relying on spreadsheets and manual filings is no longer optimal. The margin for error is shrinking, with other outsider factors like tariffs having an impact, and the stakes are rising with harsher penalties for non-compliance.  

Nevertheless, as the risks around manual global tax compliance ramp up, there are ways to make the lives of your finance teams easier. 

The shift to e-invoicing and software automation for global tax compliance

While most businesses are feeling the pressure of mounting tax complexity, very few are using the tools that could relieve it. As things stand, Sage has found that only 3% of UK B2B companies have adopted e-invoicing – despite the fact it can save finance teams up to 17 hours a week. 

The benefits of e-invoicing are far-reaching. It doesn’t just streamline the invoicing process – it reduces late payments, improves cash flow and helps businesses meet regulatory demands more efficiently, especially when dealing with countries in mainland Europe. In fact, according to Sage, 92% of SMEs that adopt e-invoicing report significant benefits. At a national level, a wider rollout could deliver a substantial productivity boost to the UK economy, following trends that are already being set on the continent. 

For finance teams, this shift is about more than just efficiency – it’s about creating space for strategy. By removing the manual burden, teams can focus on budgeting, forecasting and planning for global growth, making automation not just a tool, but a competitive advantage. 

How Thinc and Avalara enable automation

Avalara’s suite of tax automation tools are purpose-built to handle the growing complexity of global compliance. Its flagship product, AvaTax, calculates the latest VAT and sales tax rates in a chosen region – removing the need for manual updates. It supports VAT registration in 77 countries, applies accurate tax rules at the point of transaction and simplifies return filing with built-in validation checks and audit trails. It does all of this in seconds, and you can see how it all works in our latest webinar. 

With the UK Government consulting more on the use of e-invoicing, UK businesses are starting to pay more attention to its capabilities. To support businesses with e-invoicing, Avalara also offers a fully integrated e-invoicing solution that’s compliant with legislation in over 60 countries.  

Thinc takes automation one step further. Also a partner to Sage for 20+ years, our deep understanding of systems like Sage 200 and Sage Intacct means that we’re able to design bespoke software packages to suit your business needs, especially when it comes to growth and scalability. Through fine-tuned implementations and integration with Sage systems, Thinc complements Avalara’s offerings perfectly, providing the complete solution from decades of experience. 

This all sounds great, but what’s the next step for me as a finance leader? 

Firstly, we’d advise you to talk with Thinc about your growth targets. If your expansion goals require you to scale up your IT infrastructure, we’d be happy to help. We often find that, as a business grows, they require components like an Enterprise Resource Planning system (ERP), such as Sage 200 or SAP Business One.  

Both solutions are designed to increase efficiency and output, scaling as your business scales. What’s more, you can create a completely customisable solution that serves your business needs – this can be a complex process, but with our expertise, we’re able to advise best on what’ll work best for you. 

We’d then encourage you to tap into the expertise of Avalara, taking a sales tax risk assessment. You’ll also get an in-depth look at economic and physical nexus tax compliance, along with a one-on-one consultation with an Avalara sales tax professional. Avalara will advise you on how and where to leverage automation to reduce risk, reclaim lost time and how this will support your strategic growth.  

Begin your journey towards simplifying tax compliance

As international trade grows increasingly complex, one thing is clear – technology is the key to simplifying the complicated. Through expert advice from partners like Thinc and Avalara, you can take the time-consuming headaches out of global tax compliance. Rates and tariffs no longer have to be a daunting burden; the experts are here to help, taking care of the small stuff so you can concentrate on the big stuff.  

There’s additional support available for the wider scope of international growth, too. The Department for Business and Trade, for instance, can help answer your questions and provide valuable insight into opportunities overseas. Listed on their expert support directory, we can also give you an idea of how your tech stack might translate to overseas operations. 

International growth should be exciting. Through our experience and expertise in expanding overseas, combined with our relationships with leading partners and networks, we can help you keep it that way.