The service provides both integrated and standalone features to support e-commerce, marketplace, and online platforms. These features help businesses model transactions, automate tax calculations, support compliance requirements, and manage complex indirect tax scenarios across jurisdictions.

Support direct and marketplace transactions

Most e-commerce transactions involve two parties: a buyer and a seller. These transactions are referred to as direct-to-consumer or two-party transactions. In some scenarios, a third party—a marketplace—facilitates the transaction between a buyer and a seller. These transactions are referred to as marketplace or three-party transactions.

Each business model requires a distinct approach to tax calculation, liability determination, validation, and invoicing. The service supports both transaction models, enabling businesses and marketplaces to manage tax requirements consistently across jurisdictions.

Support global indirect tax calculations

The service supports a range of global e-commerce taxes, including:

• Sales and Use Tax (SUT)
• Goods and Services Tax (GST)
• Harmonized Sales Tax (HST)
• Provincial Sales Tax (PST)
• Quebec Sales Tax (QST)
• Value Added Tax (VAT)
• Import One-Stop Shop (IOSS) and One-Stop Shop (OSS)

For more information, see Supported Countries and Regions.

Perform tax calculations

The service calculates taxes based on the tax rules and rates configured in Vertex O Series Cloud. The tax rules in O Series Cloud determine which countries and regions are available for tax calculation.

Set tax-inclusive and tax-exclusive pricing

The service supports both pricing models:

• Tax-inclusive pricing (common in regions like the European Union)
• Tax-exclusive pricing (common in the United States)

Currency conversions

The service can convert currencies for liability determination, reporting, and invoicing purposes.

Process refunds and discounts

The service processes refunds for existing transactions and supports both tax-exclusive and tax-inclusive amounts. It automatically adjusts tax amounts according to the configuration.

The service also supports flexible discount models to accommodate different pricing strategies.

Model transactions

The service creates, stores, and manages transactions across e-commerce, marketplace, and online platforms.

Model marketplaces and sellers

Configure e-commerce, marketplace, and online platforms to control tax outcomes and compliance.

Classify product delivery

The service identifies products as:

• Physical—The tangible goods shipped to a location. Liability is often determined by this location.
• Shipping—The shipping model for physical goods.

Return comprehensive tax information

The service returns comprehensive tax information for both reporting and auditing purposes.

Vertex Invoice IQ

For more information, see Vertex Invoice IQ.

Vertex Validator

For more information, see Vertex Validator.