The indirect tax talent gap and what it means for hiring and retention  

Across the UK, demand for VAT and indirect tax professionals continues to outpace supply.

While hiring volumes have remained relatively steady, the types of roles being created have changed significantly, widening the gap between what organisations need and what the market currently offers. 

For heads of tax and hiring managers, this is no longer a short-term issue. The indirect tax talent gap is structural, shaped by digitalisation, new compliance requirements and the growing importance of tax technology. 

Businesses need to understand where the gaps sit, and how to respond, if they’re looking to build resilient, future-ready tax teams.  

Why the indirect tax talent gap is widening 

The indirect tax market has not experienced the same volume-led hiring spikes seen in corporate tax. Instead, demand has become more targeted, with a clear shift towards hybrid skill sets that are harder to source. 

There are three key drivers behind this. 

1. The shift in skill requirements

 Indirect tax roles are no longer limited to compliance or advisory work. 

Organisations are increasingly looking for tax professionals who can combine: 

• Strong VAT and indirect tax expertise, including areas such as indirect costs and tax recovery 

• Experience with tax technology, systems and data 

• Understanding of finance processes and commercial operations 

This combination is still relatively rare. Many experienced professionals have built careers in traditional VAT compliance or advisory roles, while those with systems or data experience may lack sufficient technical depth. 

The result is a clear mismatch between legacy profiles and current hiring expectations across indirect tax jobs. 

2. Digitalisation and transformation programmes

The move towards e‑invoicing, automation and real time reporting is driving demand for professionals who can operate at the intersection of tax and technology. 

Indirect tax is now embedded in: 

• ERP and finance transformation programmes 

• Automation and reporting initiatives 

• Data-led compliance and risk management 

But most tax professionals haven’t historically worked on large-scale transformation projects. This has created a limited talent pool for roles that require both technical knowledge and systems experience.

3. Increased expectations at senior levels

The expectations placed on indirect tax managers and senior leaders have expanded significantly. 

Organisations now expect individuals at manager and senior manager level to: 

• Influence transformation and tax technology projects 

• Engage with senior stakeholders, including CFOs 

• Support decision making on pricing, supply chain and indirect costs 

• Deliver strong client service, particularly in professional services environments 

This has increased demand for a smaller pool of experienced candidates, including those not actively seeking new roles.

Where organisations are struggling

While the talent gap is broad, there are clear pressure points in the market. 

Mid to senior level hiring

Roles at manager and senior manager level remain the most difficult to fill. 

At this level, organisations are typically looking for individuals who can combine: 

• Technical VAT expertise 

• Leadership and stakeholder management 

• Exposure to systems or transformation 

Very few candidates have developed across all three areas, particularly in in-house environments. 

Tax technology and transformation roles

 Demand for specialist roles in tax technology, e‑invoicing and reporting automation continues to increase. 

These roles often require: 

• Hands-on systems experience 

• Data and reporting knowledge 

• The ability to translate technical tax requirements into practical solutions 

This is still an emerging area, and many ACA-qualified professionals have not yet had exposure to these skills early in their careers. 

Complex and international organisations 

Companies operating across multiple jurisdictions require indirect tax professionals who understand: 

• Cross-border VAT rules and reporting 

• Supply chain structuring and indirect approach planning 

• Global compliance frameworks and local nuances 

These roles are highly specialised, with a limited talent pool globally.

Common hiring mistakes

In a constrained market, hiring approach matters just as much as the role itself. 

Overly rigid job specifications

 One of the most common challenges is expecting candidates to cover everything. 

Typical requirements include: 

• Deep VAT technical expertise 

• Strong tax technology capability 

• Transformation experience 

• Leadership and client service skills 

In reality, very few candidates will meet all of these criteria. Organisations that hold out for a perfect fit often face long hiring processes or lose candidates entirely. 

Overlooking transferable skills

 Another issue is underestimating the value of adjacent experience. 

Professionals from finance transformation, data and analytics, and broader tax disciplines (including corporate tax or tax relief areas) can often bring relevant skills that transfer well into indirect tax roles.

Slow or unclear hiring processes

 Speed is important in a competitive market for indirect tax jobs. 

Delays or unclear communication can result in candidates disengaging quickly. Strong candidates are often progressing through multiple opportunities at once.

Misalignment on compensation and expectations

In some cases, compensation does not reflect the breadth of skills required, particularly for hybrid roles combining VAT, systems and transformation. 

In addition, roles positioned too narrowly as compliance-focused are less attractive to candidates seeking broader exposure. 

What good looks like in today’s market 

Organisations that are successfully addressing the indirect tax talent gap tend to take a more pragmatic and flexible approach.

Hiring for potential

 Rather than focusing on complete profiles, successful teams: 

• Prioritise core strengths, whether technical VAT or systems capability 

• Identify areas that can be developed over time 

• Invest in training and development 

This approach significantly widens the available talent pool.

Building complementary teams

High-performing tax functions no longer rely on individuals to cover every skill set. 

Instead, they build teams around: 

• Technical VAT specialists 

• Tax technology experts 

• Data and process-focused professionals 

This allows organisations to deliver capability through team structure, not individual hires.

Positioning roles more effectively 

Candidates are more likely to engage with roles that offer: 

• Exposure to transformation and change initiatives 

• Cross-functional working across finance, IT and operations 

• A clear path into leadership roles such as head of tax 

How a role is framed is often just as important as salary.

Focusing on retention

Retention remains a critical piece of the puzzle. 

Organisations are increasingly investing in: 

• Exposure to new areas, including systems and automation 

• Internal mobility across tax and finance 

Clear career progression for indirect tax managers and emerging leaders 

What this means for tax professionals

 For individuals, the current market presents strong opportunities. 

To remain competitive, tax professionals should focus on building skills in: 

• Tax technology and systems 

• Data and reporting 

• Commercial awareness, including pricing and indirect costs 

Experience beyond technical VAT, whether through transformation projects or cross-functional roles, is becoming increasingly valuable. 

Qualifications such as ACA remain important but are no longer enough on their own. Broader skill sets are now essential for long-term progression.

Closing the gap

The indirect tax talent gap is unlikely to narrow in the short term. As reporting requirements evolve and digitalisation accelerates, demand for hybrid skill sets will continue to grow. 

For organisations, this means: 

• Taking a more flexible hiring approach 

• Rethinking how teams are structured 

• Investing in long-term development 

For individuals, it presents an opportunity to build careers that extend beyond traditional compliance and advisory work. 

How Brewer Morris can support your indirect tax hiring strategy

We work with organisations across the UK and globally to navigate the VAT and indirect tax hiring market. 

We understand where demand is increasing, how expectations are shifting and what it takes to secure top tax professionals in a competitive landscape. 

Whether you’re hiring for specialist VAT roles, indirect tax managers, or building capability in tax technology, our team can support you in identifying and securing the right talent. 

Get in touch to find out how we can help you build a future-ready tax function.