Thriving in the Global Retail Transformation: 3 Legislative Challenges

Explore the three most pressing challenges sellers must address as governments take actions around the global online retail marketplace.

As sellers explore new digital pathways into international markets, the need to monitor regulatory influences becomes more pressing than ever before.

Governments are taking actions to shape the emerging global online retail marketplace, which creates new challenges that sellers must address. I see these three factors as among the most pressing.

(1) Consumer Privacy Regulations:

This is a top priority for many jurisdictions. The EU’s General Data Protection Regulation (GDPR), for example, establishes rigorous standards for the treatment of customer data; specifies processes that must be followed if a data breach occurs; and imposes stiff penalties for companies that fail to follow the rules. Other tax authorities that have implemented consumer privacy legislation include Canada and many U.S. states.

(2) New Rules for Electronic Exchanges:

These range from real-time tax reporting to electronic invoicing. In the United States, the Supreme Court’s 2018 decision in South Dakota v. Wayfair enables states to require remote sellers to collect and remit sales tax, even if the company has no physical presence within the state. The ruling significantly increases the complexity of remote sellers’ data collection and management tasks.

(3) Fiscal Compliance Mandates:

Several tax authorities, including Italy and Brazil, have imposed stringent reporting requirements to tackle issues such as tax evasion and money laundering. For example, retailers are required to manage tax data in real time.

I explore these challenges and other emerging aspects of digital retail transformation in a new e-book published jointly by Vertex, SAP, and Deloitte: New Business Models In A New Global Landscape: Challenge Or Opportunity? The report, which includes in-depth contributions from industry experts, Pete Olanday at Vertex and Riad Hijal from SAP, looks at “how the global retail transformation is impacting technology, buying behaviour and more,” and is a must-read for retailers with global aspirations.

Explore more resources from our industry influencers:

Holly Hamby

TMC Managing Director, Deloitte Tax LLP

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Holly specialises in automating tax to enhance ERP systems and tax footprints. With over 20 years of experience, Holly has assisted companies in designing, developing and improving systems and processes. She champions key projects and initiatives for tax, finance and IT departments to enable them to reduce risk, increase efficiency and drive value for the overall organisation.

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