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Improving the Retail Tax Calculation Process
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As retail has become more complex, so too has the task of accounting for tax transactions. E-commerce, for instance, continues to grow rapidly. More than 263 million US consumers—or
roughly 80%
of the population—shop online, and this number is projected to climb to 291.2 million by 2025. While e-commerce allows retailers to significantly expand their reach, it also means they’ll need to comply with a dizzying array of regional and even international tax laws.
These regulations also change frequently; the Vertex
End of Year 2020 Sales Tax Rates and Rules Report
found that there were 592 total sales tax rate changes in just that year. The subsequent
Mid-Year 2021 Report
showed that the pace of change accelerated, and in the first half of 2021 there were 7% more changes than the same period in 2020.
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