Tax Velocity Gap™

Canonical Definition

The Tax Velocity Gap™ is the closing of time between when a transaction occurs and when the tax authority gains structured visibility into it — from weeks or months under periodic reporting to near-real-time under Tax Administration 3.0. The gap existed because traditional tax administration was structurally downstream: it reviewed records after the event. Tax Administration 3.0 removes that buffer. The invoice increasingly carries the tax assertion at transaction speed. Everything that follows in governance and professional practice is a consequence of that single change.

— Nitin Agarwal, Tax Technology Architect