Integrated tax technology reduces complexity and compliance

Integrated tax technology reduces complexity and compliance

Tax compliance is essential for creating seamless customer shopping experiences as retailers have evolved and changed business models over the past two years. Cross Talk 2022 saw Jennifer Polumbo from Oracle Retail, Omnichannel Solution Manager, talk with Pete Olanday (Retail Practice Leader, Vertex) and Matt Thoman (Retail Solution Owner, Vertex) about the financial implications of expanding customer service models in retail. Vertex, an Oracle partner, integrates tax services across multiple channels with Oracle Retail XstorePoint of Service as well as Order Administration.

35% of shoppers answer the question about a slow checkout. 24% respond that it is a confusing online and in-store experience. Retailers can build loyalty by reducing friction in the customer journey. 42% of customers are more likely to shop with a retailer that offers seamless checkout and returns ( Oracle Retail Consumer Research). Tax calculations can be a problem at the checkout, but it doesn’t have to. Take a look at how tax technology has changed over time and how retailers can simplify the process with one system.

The evolution in tax technology

The 1970s: Manage book-keeping, accounting

  • Centralize internal processes

The 1990s: Strengthen the management of the fundamental functions

  • Optimize your processes to increase control, manage risk, and address core requirements
  • Development of ERP core systems and the adoption of add-ons to assist with supplementary tasks

From 2000s to Today: The cloud is moving to centralize data

  • Manage the increasing complexity of globalization and regulation
  • Migration to the cloud and adoption cloud-based tools: SaaS. AI/ML.
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The future

  • To meet real-time requirements, extend the cloud
  • Adoption of edge computing, containerized architecture

A unified solution to reduce tax complexity

How can you make it seamless to shop while centralizing business processes across channels and ensuring consistency? How can you make sure that tax is processed online in the same manner as it was in-store? This can have a ripple effect on the refund process, downstream friction in operations and an impact on your business’ cost of doing so.

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Retailers can now have one Vertex O series environment that allows them to perform tax reporting and tax definition. This provides one source of truth for taxes and aligns with Oracle Retail Platform, which allows for one record of orders, inventory, customer data, and more.

The Vertex Interface is a bridge between the Oracle Retail Order Management System (ORMS) and the Vertex Tax system. It calculates the tax information for orders at strategic points such as:

  • order entry
  • Order maintenance
  • Preparation of slips
  • Billing

Vertex files are used to calculate the tax rate for each stage of an order’s lifecycle. Vertex calculates the correct tax rate using the order’s “ship from” and “ship to” addresses.

The Vertex sales tax system keeps the tax rates for every taxing jurisdiction in Canada and the United States. It allows you to report on each jurisdiction where you operate or sell.

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You don’t have to keep up with tax rates or reporting requirements for each taxing jurisdiction if you use Vertex. These rates can also be maintained on the Order Management System.

Streamline tax compliance management

Vertex has unveiled the patent-pending Vertex (r) Indirect Tax O Series (r) Edge cloud solution earlier this year. Global omnichannel retailers can now configure, automate, and deploy containerized tax engines wherever transactions are processed. This provides enhanced performance and scalability to tax automation at the point where it is needed.

This solution was created to help retailers, who can process transactions from anywhere and at any time, without any latency or dependence on connectivity. Vertex O Series edge is an end-to–end solution that allows the calculation of tax locally or in-store. Transactions are then aggregated centrally for reporting purposes and compliance.

Vertex O Series Edge allows for more precise, consistent and secure tax determinations while increasing performance. Edge technology has the advantage that it allows users to deploy multiple containers that can become distributed networks. This increases the reliability and scalability of critical applications.


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