Demand for cross-border sales causes operational challenges

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 a global provider of tax technology solutions a growing demand for cross-border sales is causing operational challenges.

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 respondents stating that half of their sales via marketplaces are cross-border transactions.

However 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.

For sellers 44% of finance professionals are unclear if they are responsible for collecting VAT or if it is the responsibility of...