Big data analytics continue to transform the retail industry by giving companies a way to tap into deeper knowledge of their customers to provide increased value throughout these ecommerce interactions. This necessitates more robust tax-focused data management as well, given the growing complexities of tax rules and the demand for more tax transparency.
For example, if you’ve spent any time shopping on Amazon recently, you’ve probably noticed the increasing amount of personalization the platform provides. However, you may not have noticed that Amazon now collects sales tax in all states that require it.
This sums up many of the data management opportunities and challenges facing retailers of all types (traditional, online, and of the bricks and clicks variety). These organizations are simultaneously looking for new ways to exploit big data to enhance the customer experience and solutions to help them marshal massive amounts of data for increasingly demanding tax compliance requirements.
Tax-savvy retail companies should consider these two aspects of the big data challenge in parallel, and a new white paper by my colleague, Vertex Practice Leader – Consulting, Retail Practice Pete Olanday, is a great place to start. The report takes an in-depth look at data management in the omni-channel era and its implications for tax departments looking to bring value to their organization.
Read the report to learn:
- How retailers of all sizes are leveraging big data analytics;
- How they’re meeting the twin challenges of increasing tax complexity and demands for greater tax transparency; and
- Four essential components of effective tax data management technologies.
The report is a quick read and will leave you with some deep insights into the tech strategies tax departments of retail companies need to consider to keep up with the extraordinary pace of change in the industry.
Please remember that the Tax Matters provides information for educational purposes, not specific tax or legal advice. Always consult a qualified tax or legal advisor before taking any action based on this information.