Don’t let tax break your festive spirit (or profit)
Despite ongoing uncertainty with the ongoing Covid-19 pandemic, new research suggests 79% of retailers are expecting 2021 to be their biggest holiday season on record.
With consumers seemingly determined to catch up on lost time with loved ones, it appears little will dampen their festive spirit. Apart from perhaps, worries as to whether Santa will be able to deliver this year. For online retailers, it’s not too late to get onto your buyers’ good list and get ready to welcome in 2022 with a bang.
According to a recent survey we conducted, over a third (34%) of consumers are worried about supply chain issues delaying deliveries. A further 28% are nervous about Brexit customs issues delaying the delivery of gifts at the border. Despite these concerns, price conscious consumers are unwilling to pay customs excesses to ensure Santa’s parcels arrive in time with just 1 in 5 being willing to pay almost anything in customs excesses to ensure Santa will deliver their gifts in time for Christmas morning.
These concerns aren’t without justifiable cause. Retailers are also feeling the strain. Two fifths (40%) of retailers admit to feeling overwhelmed by their tax and compliance obligations, citing it as one of their greatest anxieties this holiday season. Furthermore, 43% are anxious about the current supply chain crisis delaying deliveries.
With just a few weeks to go until the end of the year, sellers are feeling far from prepared.
44% have reported that the increased volume of sales over the holiday period leads to more time spent processing tax and compliance obligations and 40% cited feeling overwhelmed by their tax and compliance obligations this holiday season – but it’s not too late!
If this sounds familiar, don’t panic. With increasing uncertainty with the ongoing Covid-19 pandemic, there is still time to put into place the support you need ready for you to help your customers when they need you the most.
Don’t let tax dampen your holiday spirit – 4 steps to master global tax compliance
The retail sector has had an incredibly bumpy ride since the beginning of the Covid-19 pandemic. Businesses have long been stretched and are still feeling the pressure of the multitude of changes the sector has experienced.
Let us help you plan for some well-deserved down time. Our Holiday Season Readiness Guide details four clear steps to master global tax compliance:
- Enhance the checkout experience: Online buyers have grown accustomed to viewing tax and shipping in the shopping cart. Retailers need to provide speedy, accurate, and consistent sales tax calculations across all channels. Are you ready for automation?
- Accommodate growth and change: The surge in ecommerce demand, provides businesses with opportunities to enter new channels, sell to new locations, and expand product catalogues. How can you deliver a seamless experience which results in consistent tax determination across multiple systems?
- Drive efficiency and reduce cost: As retailers grow and sell across multiple borders, more resources are required to keep up with multiple sales tax rules, differing tax regulations, and filing requirements. How can you do more, with less?
- Reduce risks as compliance increases: During the holidays, retailers expand product lines, head count, and pop-up locations to meet increased consumer demand. In doing so, their indirect tax obligations can quickly change. How prepared are you
Whether you need to provide buyers with a smooth checkout experience or need a tax compliance management solution, Avalara can help. Get ahead this season and find out how we can help deliver you the gift of time.
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