Consider Top 5 Tax-Related Questions Shopify Users Should Ask to Grow Their Business

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As a Shopify user seeking to scale your business and expand into new markets, it’s essential to ensure that your tax compliance is up to par. With over 20,000 tax rules and rates worldwide, frequent changes and varying sales volumes, managing taxes manually can become a daunting task. That's where tax automation software comes into play. Let's explore five key questions to ask when considering tax automation:  

  1. Do we feel confident in our capacity to manage the more than 20,000+ tax rules and rates across the globe, all of which are subject to frequent changes?  
    • Keeping track of tax regulations across different regions can be overwhelming. Tax automation software takes the burden off your shoulders by continuously updating and implementing these changes, ensuring that your business remains compliant with indirect tax obligations – without the hassle of manual intervention.  
  2. Are we able to handle both low peaks and high volumes of sales transactions?  
    • As your Shopify store grows, so does the volume of sales transactions which can be a major indirect tax challenge if not handled well. Tax automation software is equipped to handle fluctuations in sales volumes, ensuring smooth operations during both low and high peaks without compromising accuracy or efficiency.  
  3. Can we efficiently manage new product lines, sales channels, markets and company acquisitions?  
    • Expanding your business means navigating new product lines (thus dealing with product taxability), sales channels, markets and M&As. Tax automation software adapts seamlessly to these changes, allowing you to focus on growth without worrying about tax compliance.  
  4. Are your customers given a smooth, seamless experience no matter when, how or where they shop (BOPIS, BORIS, endless aisle, etc.)?  
    • In today's omnichannel retail landscape, customers expect a seamless shopping experience across various touchpoints. Tax automation software ensures that tax calculations remain consistent and accurate regardless of how or where customers choose to shop, enhancing their overall experience with your brand.   
  5. Does our business have resiliency against network outages or slow network performance?  
    • Network outages or slow performance can disrupt business operations and have an impact on customer satisfaction. Tax automation software operates independently of your network infrastructure, providing resilience against such disruptions and ensuring uninterrupted tax compliance.  

Tax automation software is essential for Shopify users looking to streamline their tax processes, mitigate compliance risks and focus on expanding their business. By asking these five questions and investing in the right tax automation solution, you can ensure that your business is well equipped to navigate indirect tax complexities while driving sustainable growth.   

Visit our partner page to learn more about our Vertex for Shopify solution. To get even more details, check out our webinar, Solving E-commerce Tax Challenges with Automation: A Deep Dive into Shopify’s New Tax Platform and Vertex Integration.

Blog Author

Erin Kissling

Erin Kissling

Partner Manager, Technology Partnerships

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Erin Kissling is a Partner Manager for technology partnerships at Vertex, responsible for leading the global partnership with Salesforce to drive new business, product and channel opportunities. Prior to this position, Erin served as a Partner Marketing Manager, supporting several e-commerce relationships including Magento, BigCommerce and Salesforce, as well as system integrators. She received her undergraduate degree from Kutztown University and is currently pursuing her MBA at Villanova School of Business.

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Learn about the Vertex integration for Shopify to calculate sales, use, and global value added tax for your ecommerce transactions.

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