Global Sales Tax Software Market Size Study, by Solution, by Deployment Mode, by Industry Vertical, and Regional Forecasts 2022-2032

PUBLISHED: October 8, 2024

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Description

Global Sales Tax Software Market is valued at approximately USD 6.9 billion in 2023 and is anticipated to grow with a healthy growth rate of more than 9.5% over the forecast period 2024-2032. Sales tax software is an essential tool designed to automate the calculation, reporting, and compliance of sales tax obligations for businesses. The software offers solutions such as consumer use tax management, value-added tax, tax return filing, and integration with financial databases, simplifying complex tax processes and enhancing efficiency. The market's growth is primarily driven by the increasing demand for automation and integration in tax processes, fueled by the adoption of cloud-based solutions at competitive prices. Businesses are increasingly seeking to streamline tax calculations, management, and reporting through advanced software solutions that leverage AI and machine learning algorithms. This trend is also driven by the rise in demand for IoT devices, which further propels the growth of the sales tax software market during the forecast period.

Moreover, the growing emphasis on regional integration and harmonization of tax legislation, coupled with the demand for accessible and cost-effective platforms, presents lucrative growth opportunities for the market. Despite these growth drivers, challenges such as the need for substantial initial investments and specialized skill sets could potentially hinder market growth. Nevertheless, the shift towards automation and user-friendly interfaces in sales tax software, along with the increasing adoption of e-commerce tax solutions, is expected to sustain the market's positive trajectory. In the e-commerce industry, sales tax software has become indispensable due to the complexity of managing local tax obligations across various jurisdictions. This complexity is compounded by frequent changes in tax laws, rates, and rules for different types of products and services. For instance, companies like Avalara provide eCommerce sales tax software to help U.S. businesses efficiently manage demanding tax obligations imposed by states and other local tax authorities.

Key regions considered in the global sales tax software market study include Asia-Pacific, North America, Europe, Latin America, and the Rest of the World. North America, particularly the U.S., dominates the market, driven by the extensive adoption of sales tax software across various industry verticals such as BFSI, retail, and e-commerce. The region's focus on technological advancements and the presence of key market players also contribute to its leading position. Whereas, the market in Asia Pacific is anticipated to grow at the fastest rate over the forecast period fueled by rapid growth of e-commerce, increasing complexity of tax regulations across countries, and the rising need for real-time tax calculation and compliance to avoid penalties. Additionally, government initiatives promoting digitalization and tax automation are boosting the demand for sales tax software in the region.

Major market players included in this report are:

Xero Limited
Thomson Reuters
Ryan, LLC
LumaTax, Inc.
Sovos Compliance, LLC
APEX Analytix, LLC
CFS Tax Software Inc.
Intuit Inc.
Vertex, Inc.
Sage Intacct, Inc.
Sales Tax DataLINK
Avalara Inc.
Wolters Kluwer

The detailed segments and sub-segments of the market are explained below:

By Solution:

Consumer Use Tax Management
Tax Filings
Others

By Deployment Mode:

On-Premises
Cloud

By Industry Vertical:

BFSI
Transportation
Retail
IT and Telecom
Healthcare
Others

By Region:

North America
U.S.
Canada
Europe
UK
Germany
France
Spain
Italy
ROE
Asia Pacific
China
India
Japan
Australia
South Korea
RoAPAC
Latin America
Brazil
Mexico
RoLA
Middle East & Africa
Saudi Arabia
South Africa
RoMEA

Years considered for the study are as follows:

Historical year - 2022
Base year - 2023
Forecast period - 2024 to 2032

Key Takeaways:

Market Estimates & Forecast for 10 years from 2022 to 2032.
Annualized revenues and regional level analysis for each market segment.
Detailed analysis of geographical landscape with country-level analysis of major regions.
Competitive landscape with information on major players in the market.
Analysis of key business strategies and recommendations on future market approach.
Analysis of competitive structure of the market.
Demand-side and supply-side analysis of the market.

Chapter 1. Global Sales Tax Software Market Executive Summary

1.1. Global Sales Tax Software Market Size & Forecast (2022-2032)
1.2. Regional Summary
1.3. Segmental Summary
- 1.3.1. By Solution
- 1.3.2. By Deployment Mode
- 1.3.3. By Industry Vertical
1.4. Key Trends
1.5. Recession Impact
1.6. Analyst Recommendation & Conclusion

Chapter 2. Global Sales Tax Software Market Definition and Research Assumptions

2.1. Research Objective
2.2. Market Definition
2.3. Research Assumptions
- 2.3.1. Inclusion & Exclusion
- 2.3.2. Limitations
- 2.3.3. Supply Side Analysis
  - 2.3.3.1. Availability
  - 2.3.3.2. Infrastructure
  - 2.3.3.3. Regulatory Environment
  - 2.3.3.4. Market Competition
  - 2.3.3.5. Economic Viability (Consumer's Perspective)
- 2.3.4. Demand Side Analysis
  - 2.3.4.1. Regulatory frameworks
  - 2.3.4.2. Technological Advancements
  - 2.3.4.3. Environmental Considerations
  - 2.3.4.4. Consumer Awareness & Acceptance
2.4. Estimation Methodology
2.5. Years Considered for the Study
2.6. Currency Conversion Rates

Chapter 3. Global Sales Tax Software Market Dynamics

3.1. Market Drivers
- 3.1.1. Rise in demand for automation and integration in tax processes
- 3.1.2. Growing adoption of cloud-based solutions
- 3.1.3. Increasing demand for IoT devices
3.2. Market Challenges
- 3.2.1. High initial investments and need for specialized skill sets
- 3.2.2. Integration complexities with existing systems
3.3. Market Opportunities
- 3.3.1. Regional integration and harmonization of tax legislation
- 3.3.2. Growth in e-commerce and digital transactions
- 3.3.3. Demand for user-friendly and cost-effective platforms

Chapter 4. Global Sales Tax Software Market Industry Analysis

4.1. Porter's 5 Force Model
- 4.1.1. Bargaining Power of Suppliers
- 4.1.2. Bargaining Power of Buyers
- 4.1.3. Threat of New Entrants
- 4.1.4. Threat of Substitutes
- 4.1.5. Competitive Rivalry
- 4.1.6. Futuristic Approach to Porter's 5 Force Model
- 4.1.7. Porter's 5 Force Impact Analysis
4.2. PESTEL Analysis
- 4.2.1. Political
- 4.2.2. Economical
- 4.2.3. Social
- 4.2.4. Technological
- 4.2.5. Environmental
- 4.2.6. Legal
4.3. Top investment opportunity
4.4. Top winning strategies
4.5. Disruptive Trends
4.6. Industry Expert Perspective
4.7. Analyst Recommendation & Conclusion

Chapter 5. Global Sales Tax Software Market Size & Forecasts by Solution 2022-2032

5.1. Segment Dashboard
5.2. Global Sales Tax Software Market: Solution Revenue Trend Analysis, 2022 & 2032 (USD Billion)
- 5.2.1. Consumer Use Tax Management
- 5.2.2. Tax Filings
- 5.2.3. Others

Chapter 6. Global Sales Tax Software Market Size & Forecasts by Deployment Mode 2022-2032

6.1. Segment Dashboard
6.2. Global Sales Tax Software Market: Deployment Mode Revenue Trend Analysis, 2022 & 2032 (USD Billion)
- 6.2.1. On-Premises
- 6.2.2. Cloud

Chapter 7. Global Sales Tax Software Market Size & Forecasts by Industry Vertical 2022-2032

7.1. Segment Dashboard
7.2. Global Sales Tax Software Market: Industry Vertical Revenue Trend Analysis, 2022 & 2032 (USD Billion)
- 7.2.1. BFSI
- 7.2.2. Transportation
- 7.2.3. Retail
- 7.2.4. IT and Telecom
- 7.2.5. Healthcare
- 7.2.6. Others

Chapter 8. Global Sales Tax Software Market Size & Forecasts by Region 2022-2032

8.1. North America Sales Tax Software Market
- 8.1.1. U.S. Sales Tax Software Market
  - 8.1.1.1. Solution breakdown size & forecasts, 2022-2032
  - 8.1.1.2. Deployment Mode breakdown size & forecasts, 2022-2032
  - 8.1.1.3. Industry Vertical breakdown size & forecasts, 2022-2032
- 8.1.2. Canada Sales Tax Software Market
8.2. Europe Sales Tax Software Market
- 8.2.1. U.K. Sales Tax Software Market
- 8.2.2. Germany Sales Tax Software Market
- 8.2.3. France Sales Tax Software Market
- 8.2.4. Spain Sales Tax Software Market
- 8.2.5. Italy Sales Tax Software Market
- 8.2.6. Rest of Europe Sales Tax Software Market
8.3. Asia-Pacific Sales Tax Software Market
- 8.3.1. China Sales Tax Software Market
- 8.3.2. India Sales Tax Software Market
- 8.3.3. Japan Sales Tax Software Market
- 8.3.4. Australia Sales Tax Software Market
- 8.3.5. South Korea Sales Tax Software Market
- 8.3.6. Rest of Asia Pacific Sales Tax Software Market
8.4. Latin America Sales Tax Software Market
- 8.4.1. Brazil Sales Tax Software Market
- 8.4.2. Mexico Sales Tax Software Market
- 8.4.3. Rest of Latin America Sales Tax Software Market
8.5. Middle East & Africa Sales Tax Software Market
- 8.5.1. Saudi Arabia Sales Tax Software Market
- 8.5.2. South Africa Sales Tax Software Market
- 8.5.3. Rest of Middle East & Africa Sales Tax Software Market

Chapter 9. Competitive Intelligence

9.1. Key Company SWOT Analysis
9.2. Top Market Strategies
9.3. Company Profiles
- 9.3.1. Xero Limited
  - 9.3.1.1. Key Information
  - 9.3.1.2. Overview
  - 9.3.1.3. Financial (Subject to Data Availability)
  - 9.3.1.4. Product Summary
  - 9.3.1.5. Market Strategies
- 9.3.2. Thomson Reuters
- 9.3.3. Ryan, LLC
- 9.3.4. LumaTax, Inc.
- 9.3.5. Sovos Compliance, LLC
- 9.3.6. APEX Analytix, LLC
- 9.3.7. CFS Tax Software Inc.
- 9.3.8. Intuit Inc.
- 9.3.9. Vertex, Inc.
- 9.3.10. Sage Intacct, Inc.
- 9.3.11. Sales Tax DataLINK
- 9.3.12. Avalara Inc.
- 9.3.13. Wolters Kluwer

Chapter 10. Research Process

10.1. Research Process
- 10.1.1. Data Mining
- 10.1.2. Analysis
- 10.1.3. Market Estimation
- 10.1.4. Validation
- 10.1.5. Publishing
10.2. Research Attributes