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Supply & Value Chain Tax Advisory

Align operating models and tax strategy to create sustainable and resilient supply chains

Deloitte's supply and value chain tax advisory teams can assist in integrating tax planning into the overall management of your company's supply and value chain.

Aligning tax strategy with operating and business models is an important element of profitability and shareholder value. Yet, doing so is challenging,  with changeable regulatory and legislative landscapes which affect how companies manage and report tax. Unpredictable global geopolitical change and uncertainty is also increasingly disrupting supply chains. 

Deloitte’s supply and value chain tax advisory services can help you navigate  these challenges and support business transformation. We can assist leaders in understanding the tax implications and options available, helping capture value created from business transformation as leaders seek to harmonise  business strategy, tax strategy, and operational risk.

Our agile team of supply chain tax specialists support clients to design, implement, sustain, and defend global supply chain decisions. When called on, Deloitte supply chain tax teams work closely with Deloitte Legal professionals in creating legal and contractual frameworks to support cross-border transactions. 

Optimising value chains and tax strategy

Deloitte tax supply chain specialists deliver agile and resilient supply chain solutions across the full tax spectrum, from indirect tax, international tax and transfer pricing, reporting, compliance, process, people, multi-jurisdictional and contracting. 

Deloitte’s VCA methodology begins by analysing your organisation’s operating model, including key business processes and location of key assets and personnel; information systems; and tax and legal structure. Deloitte teams will identify opportunities in the business model analysis phase, including preliminary tax and operational impacts, that business leaders can review against their business strategy.

When a deeper VCA project is appropriate, phase 2 is a design phase when Deloitte specialists and business leadership work together to develop a detailed, tax-efficient operating model. Depending on the value chain opportunity identified, this may include realigning supply chain components, reconfiguring technology systems, readying workforce models and reorganising tax and legal structures to support the prioritised future state operating model. Typically, we will collaborate with you to use data analytics, advanced modelling and artificial intelligence to assess and reconcile supply chain transformation decisions to current tax policies.

With the new design in hand, Deloitte teams remain available to support implementation and adoption of processes, helping to monitor the performance and sustainability of your operating model.

Supply chain resilience and sustainability is a business imperative, influenced by global geopolitical fluctuations, challenges and changes with regulatory change, along with ensuring business continuity and profitability.

Deloitte tax supply chain specialists can analyse the tax implications of VAT; global trade; international tax and transfer pricing standards and the tax liability arising from activities. A typical outcome is the strategic alignment of supply chain components so that functions and risks reside where they add value from a tax perspective. This can affect physical assets like inventory, manufacturing facilities, and personnel, as well as intellectual property (IP) and intangibles.

Achieving value chain alignment and integrating the supply chain with a global tax strategy can help organisations meet business goals, mitigate risks and increase resiliency.

Artificial intelligence, data analytics and automation enabled by the cloud are changing value/supply chains across all industries. 

Tax and legal considerations are core to designing the business model changes - as is the use of advanced tax technologies to drive efficiency across the tax function. 

Climate and sustainability (ESG) concerns and goals increasingly drive the change towards more sustainable and resilient supply chains. This is both consumer demand-based carbon reduction, additionally influenced by the global grants and incentives landscape, and changes in taxation and reporting requirements.

Layer in the regulatory landscape - CSRD and CBAM - and the impacts these alone have, supply chain sustainability and resilience is driving a change in organisational behaviour.  

From environmental taxes, grants and incentives and meeting policy requirements, through to business model and supply chain redesign, tax and legal expertise is pivotal to ESG-driven supply chain transformation. 

Value Chain Alignment

Value Chain Alignment is the process of integrating the operating model and global tax structures into the way a business operates. VCA is all about creating value through business transformation.

Even if your business has undertaken a VCA project in the past, now is the time to reevaluate your strategy to ensure your supply chain remains sustainable and resilient.