Research Reveals Indirect Tax Compliance a Top Concern with Marketplace Operators and Sellers Looking to Keep Operational Challenges at a Minimum with Growing Demand for Cross-Border Sales
LONDON, May 24, 2023 (GLOBE NEWSWIRE) -- Increasingly, businesses are turning to marketplaces to sell products and services online, with three out of five using third-party operators to reach a wider geographical market. Yet, according to research by Vertex, Inc. (NASDAQ:VERX) (“Vertex” or the “Company”), a global provider of tax technology solutions, a growing demand for cross-border sales is causing operational challenges. The study identifies indirect tax complexities as a concern both parties are facing and need to address.
The research which surveyed 479 finance professionals globally (divided between marketplace operators and sellers) highlights that selling into new territories is a key objective for online businesses, with many using marketplaces to reach a global customer base (39%); standout amongst competitors (35%): and expand their ‘shop front’ in target markets (31%). Respondents also stated that half of their sales via marketplaces are cross-border transactions.
Marketplace operators on average currently sell across 40 countries and in keeping with the boom of e-commerce, report their revenue has increased by approximately 23% over a 12-month period. Leading to marketplaces experiencing growth in both attracting more customers and sellers and expanding into more countries.
89% of marketplace operators find it difficult to manage indirect tax rules and regulations. Three quarters agree that keeping track of these obligations becomes challenging when moving into new countries. 74% of respondents also highlighted that an increase in cross-border transactions is adding complexity to the business, whilst 66% are struggling with indirect tax and financial processes.
For sellers, 44% of finance professionals are unclear if they are responsible for collecting VAT or if it is the responsibility of the marketplace. This extends to their indirect tax obligations in different jurisdictions, with 36% unsure when and where they are liable for local, regional, and country-level indirect taxes and at what rate. There is major confusion over tax liabilities when there is a mix of products from multiple sellers in the shopping basket.
Peter Boerhof, Senior Director VAT at Vertex commented: “As more sellers turn to marketplaces to elevate trade into new territories, they need to feel confident that operational challenges are at a minimum. If not, sellers might be deterred from using these platforms as a growth channel in the future. Marketplaces should consider investing in an integrated, indirect tax engine to support sellers with a frictionless commerce experience and to ensure compliance obligations are met.”
Download the full report here.
Notes to editor
Research results available on request.
About the research
The research was conducted by Sapio Research UK on behalf of Vertex. Two surveys were conducted. One amongst 268 B2B e-commerce/marketplace operators with a revenue of $20m+; and the other survey was conducted amongst 211 third party marketplace sellers, with a revenue of $15m+. All respondents work within the roles of tax, finance, or accounting and were based across Germany, Benelux, France, UK/Ireland, US, Canada, Spain, Portugal, Italy, Brazil, and Argentina.
Vertex is a leading global provider of indirect tax software and solutions. The company's mission is to deliver the most trusted tax technology enabling global businesses to transact, comply and grow with confidence. Vertex provides solutions that can be tailored to specific industries for major lines of indirect tax, including sales and consumer use, value added and payroll. Headquartered in North America, and with offices in South America and Europe, Vertex employs over 1,400 professionals and serves companies across the globe.
For more information, visit www.vertexinc.com or follow us on Twitter and LinkedIn.
Copyright © 2023 Vertex, Inc. All rights reserved. The information contained herein is intended for information purposes only, may change at any time in the future, and is not legal or tax advice. The product direction and potential roadmap information is not a guarantee, may not be incorporated into any contract, and is not a commitment to deliver any material, code, or functionality. This information should not be relied upon in making purchasing, legal, or tax decisions. The development, release, and timing of any features or functionality described for Vertex's products remains at the sole discretion of Vertex, Inc. Any statements in this release that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to various risks and uncertainties described in Vertex's filings with the U.S. Securities and Exchange Commission ("SEC") that could cause actual results to differ materially from expectations. Vertex cautions readers not to place undue reliance on these forward-looking statements which Vertex has no obligation to update.
Skout PR for Vertex, Inc.
+44 7888 177 198
Skout PR for Vertex, Inc.
To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml.globenewswire.com, please give your consent at the top of this page.
About GlobeNewswire by notified
One Liberty Plaza - 165 Broadway
NY 10006 New York
GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.
Subscribe to releases from GlobeNewswire by notified
Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from GlobeNewswire by notified
Prepayments, Realkredit Danmark A/S6.6.2023 08:34:05 CEST | Press release
To NASDAQ CopenhagenExecutive Board Lersø Parkallé 100 DK-2100 København Ø www.rd.dk Telephone +45 7012 5300 Telefax +45 4514 9622 6 June 2023 Company Announcement No 44/2023 Prepayments, Realkredit Danmark A/S Pursuant to §24 of the Capital Markets Act, Realkredit Danmark A/S hereby publishes prepayments as at Friday 2 June 2023. Please find the data in the attached file. The information will also be available on www.rd.dk. Yours sincerely The Executive Board Any additional questions should be addressed to Hella Gebhardt Rønnebæk, Chief Analyst, phone +45 4513 2068. Attachments Nr. 44_Ekstraordinaere indfrielser pr. 02.06.2023_ukBilag til selskabsmeddelelse nr. 44-2023
Ekstraordinære indfrielser, Realkredit Danmark A/S6.6.2023 08:34:05 CEST | pressemeddelelse
Til NASDAQ KøbenhavnDirektionen Lersø Parkallé 100 2100 København Ø www.rd.dk Telefon 7012 5300 Telefax 4514 9622 6. juni 2023 Selskabsmeddelelse nummer 44/2023 Ekstraordinære indfrielser, Realkredit Danmark A/S I medfør af lov om kapitalmarkeder §24 oplyses hermed om ekstraordinære indfrielser vedrørende Realkredit Danmark A/S pr. fredag den 2. juni 2023. Oplysningerne fremgår af vedhæftede datafil. Oplysningerne vil endvidere kunne ses på Realkredit Danmarks hjemmeside på www.rd.dk. For yderligere informationer om dataformat og –indhold henvises til Nasdaq Copenhagen A/S’s hjemmeside. Med venlig hilsen Direktionen Eventuel henvendelse kan rettes til chefanalytiker Hella Gebhardt Rønnebæk, 45 13 20 68. Vedhæftede filer Nr. 44_Ekstraordinaere indfrielser pr. 02.06.2023_dkBilag til selskabsmeddelelse nr. 44-2023
WithSecure Corporation: Notice pursuant to the Finnish Securities Market Act, Chapter 9, Section 106.6.2023 08:30:00 CEST | Press release
WithSecure Corporation, Stock Exchange Release, 6 June 2023, at 9.30 EEST WithSecure Corporation: Notice pursuant to the Finnish Securities Market Act, Chapter 9, Section 10 WithSecure Corporation has received an announcement from Nordea Funds Ltd. on 2 June 2023, in accordance with the Finnish Securities Market Act Chapter 9, Section 5. According to the announcement, the total number of votes held by Nordea Funds Ltd. decreased to below ten (10) per cent of the total number of votes of WithSecure Corporation on 1 June 2023. Total position of Nordea Funds Ltd. subject to the notification: % of shares and voting rights % of shares and voting rights through financial instruments % of totalTotal number of shares and voting rights of issuer Resulting situation on the date on which threshold was crossed or reached Shares: 9.59% Votes: 9.90% Shares: 9.59% Votes: 9.90% 176,098,739.00 Position of previous notification (if applicable) Shares: 9.81% Votes: 10.12% Shares: 9.81% Votes: 10.12% Noti
Equinor ASA: Share buy-back6.6.2023 08:00:00 CEST | Press release
Please see below information about transactions made under the share buy-back programme for Equinor ASA (OSE:EQNR, NYSE:EQNR). Date on which the second tranche of the share buy-back programme for 2023 was announced: 4 May 2023. The duration of the second tranche of the buy-back programme for 2023: 11 May to no later than 25 July 2023. Size of the buy-back programme: Up to 94,000,000 shares, with a maximum total consideration for the second tranche: USD 550,000,000. From 29 May to 2 June, Equinor ASA has purchased a total of 2,117,395 own shares at the Oslo Stock Exchange at an average price of NOK 288.2593 per share. Aggregated overview of transactions per day: DateAggregated volume (number of shares)Weighted average share price (NOK)Total transaction value (NOK)29 May30 May510,000292.4021149,125,071.0031 May560,000284.7080159,436,480.001 June550,000284.5167156,484,185.002 June497,395292.1483145,313,103.68Previously disclosed buy-backs under the second tranche of the 2023 programme 4,0
Progress on share buyback programme6.6.2023 08:00:00 CEST | Press release
Progress on share buyback programme ING announced today that, in line with the launch of our €1.5 billion share buyback programme announced on 11 May 2023, we repurchased 1,711,037 shares during the week of 29 May 2023 up to and including 2 June 2023. The shares were repurchased at an average price of €11.81 for a total amount of €20,199,121.24. For detailed information on the daily repurchased shares, individual share purchase transactions and weekly reports, see the ING website at www.ing.com/investorrelations. The total number of shares repurchased under this programme to date is 5,466,433 ordinary shares at an average price of €11.91 for a total consideration of €65,084,362.50. To date approximately 4.34% of the maximum total value of the share buyback programme has been completed. Note for editors For further information on ING, please visit www.ing.com. Frequent news updates can be found in the Newsroom or via the @ING_news Twitter feed. Photos of ING operations, buildings and it