With e-commerce transactions expected to reach a record $5 trillion globally this year, it is no surprise that many companies have boosted their online sales capability. COVID-19 caused a cultural shift taking online buying to the next level, and the prognosis is that those levels of e-commerce are here to stay. For many businesses that means more cross-border transactions to deal with. And that means greater challenges in staying on the right side of indirect tax obligations.
Over 80 countries now apply a tax at destination rule to online sales, increasing the need for businesses to switch to customer location-based tax models. Customers purchasing online can be based anywhere these days, so indirect tax technology must be capable of handling the various indirect tax obligations specific to all the countries of the buyers’ locations.
Source International Tax Review
