Europe Tax Software Market to Grow at a CAGR of 10.2% to reach US$ 7,631.9 Million from 2020 to 2028
The Europe tax software market is expected to grow from US$ 3,855.7 million in 2021 to US$ 7,631.9 million by 2028; it is estimated to grow at a CAGR of 10.2% from 2021 to 2028.
The digital revolution across Europe creates huge opportunities for businesses to utilize digital services and automation to modify their business models and traditional processes in order to improve operational efficiency and increase revenue. Enhanced operational efficiency, end-to-end business process optimization, and cost and human error reduction are a few major benefits of the digital transformation in tax systems. Therefore, the demand for tax software is increasing in Europe.
Tax software quickly ascertains a client’s overall financial situation and suggests insurance or investment products, or other services such as auditing, bookkeeping or even comprehensive financial plans, that may be needed. The additional revenue that can be generated from this approach can be substantial in many cases. Also, the tax preparation process has become fast and efficient as vast information is now available in digital format. It helps accountants prepare tax to import their client data from personal finance software directly on their tax returns with a single click as a substitute of entering all those numbers manually. Also, electronic signatures have been entered with the client’s permission, which often eliminates the need for clients to be physically present in the accountant’s office. Furthermore, mobile apps are now available for taxpayers to e-file their tax effortlessly. Thus, digitization in the tax paying system is expected to propel the growth of the Europe tax software market during the coming years.
The western part of Europe is known for its better standards of living, with people exhibiting higher income levels. Such enhancement in areas/sectors provides ample growth opportunities to the businesses to further nurture their business through product development, geographic expansion, etc. The SMEs are benefitted with the adoption and implementation of cloud accounting in their organizational structures as it helps them lower the cost burden incurred by subscription, software license gain, and maintenance. The cloud infrastructure also facilitates quick access to the shared data in real time through a user-friendly interface. Also, the market is currently led by the companies that provide traditional tax software-as-a-service, and these players are working endlessly to increase the usability of systems and streamline the administrative tasks to ensure operational efficiency, which is compelling them to opt for cloud-based subscription software. Apart from technological advancements in tax software, the growth of SMEs and funding for the same also essentially support the goal of the players to accomplish their predetermined targets.
The government bodies in Europe are realizing that all businesses need assistance during the COVID-19 outbreak. Like 2008 financial crisis, the outbreak crisis is impacting the business operations of both public and private companies. In countries, such as the UK, the government released the stay-at-home order in the first quarter of 2020. Thus, the trend of remote working has emerged. Remote working compelled the businesses to adopt advanced systems to have access to financial records. Several companies are now shifting from office-based financial management process to tax preparation & online accounting software to provide users a secure and better access to financial report remotely. The demand for advanced accounting software and professional services is increasing to organize business processes and make tax preparation less arduous. This aspect would gradually impact the adoption of tax software in Europe during the forecast period.
Europe Tax Software Market Revenue and Forecast to 2028 (US$ Million)
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Europe Tax Software Market—Segmentation
Europe Tax Software Market by Type
- Software
- Service
Europe Tax Software Market by Deployment
- On-Premise
- Cloud
Europe Tax Software Market by Tax Type
- Sales Tax
- Income Tax
- Corporate Tax
- Others
Europe Tax Software Market by Industry Vertical
- BFSI
- IT & Telecom
- Healthcare
- Government
- Retail
- Others
Europe Tax Software Market by Country
- Germany
- France
- Italy
- UK
- Russia
- Rest of Europe
Europe Tax Software Market-Companies Mentioned
- Apex Analyticx
- Avalara Inc
- Chetu, Inc
- H & R Block; Intuit Inc.
- Sage Group PLC
- Thomson Reuters Corporation
- Vertex, Inc.
- Wolters Kluwer N.V.
- Xero Limited.
- Intuit Inc.
Europe Tax Software Market Report Scope
| Report Attribute | Details |
|---|---|
| Market size in 2021 | US$ 3,855.7 Million |
| Market Size by 2028 | US$ 7,631.9 Million |
| Global CAGR (2021 - 2028) | 10.2% |
| Historical Data | 2019-2020 |
| Forecast period | 2022-2028 |
| Segments Covered |
By Product
|
| Regions and Countries Covered | Europe
|
| Market leaders and key company profiles |
|
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Product, Tax Type, Deployment Type, End-User, and Vertical
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
France, Germany, Italy, Russian Federation, United Kingdom
Frequently Asked Questions
In the current scenario, there are number of key trends prevailing in tax which will help in transforming the entire tax industry. It includes digitisation of tax & compliance, adoption of cloud technologies, and development in financial services, as well as recovery of SMEs post COVID-19 pandemic outbreak. Companies like Thomson Reuters, Avalara are taking initiatives which are expected to help in boosting the market. For instance, Avalara have completed acquisition of various businesses to amplify tax content of their Avalara Compliance Cloud. The product caters requirement of businesses of various industries/geographies to enhance their ability to address transaction tax compliance.
Blockchain works as a record of information that is replicated and distributed across computers that are linked together in a network. These distributed records create a single record of a transaction that can be accessed and verified independently by all permitted parties in the transaction. The need for centralization through an intermediary is eliminated by the blockchain technology, thereby allowing parties to transact and share information directly with each other in a secure manner.
In 2020, rest of Europe led the market with a substantial revenue share. As use of tax software for filing tax returns for income tax is projected to rise at a high pace, the tax software providers persist with an opportunity to cater countries with high personal income tax rates.
Germany is anticipated to be a fastest growing country in the market. The Germany retail industry has arisen as one of the most active and fast-paced industries owing to the entry of numerous new players. Retail companies in the country are focusing on sales tax strategy. The companies are focusing on automated solutions which remove compliance risk increase accuracy and enhances efficiency. In addition, the country also aims to levy taxes on tech giants. Imposition of taxes on the country’s gigantic technological companies is expected to increase the use of advanced tax technologies as business operations of tech giants are spread widely.
Cloud accountancy has widely transformed how accountants work regularly and communicate with their customers. By enabling accountants to run accounting tasks despite any location, the use of the cloud is rising. The accountants are ready to play a vital role in presenting cloud computing to businesses. Adoption of cloud based platforms among accountant will help in penetrating the use of cloud-based tax software in the forthcoming period.
The major companies in tax software market includes Wolters Kluwer; Thomson Reuters; Avalara; Sovos Compliance; and Vertex. The listing of these five key players is derived by considering following key parameters: overall revenue, segmental revenue, brand image & industry expertise, current tax software portfolio and related products, customer base, geographical reach, research and development investments, patents, technology integration, new product launches, partnerships, mergers & acquisitions, and other market related activities.
The List of Companies - Europe Tax Software Market
- APEX Analytix
- Avalara Inc.
- Chetu, Inc.
- H & R Block
- Intuit Inc.
- Sage Group PLC
- Thomson Reuters Corporation
- Vertex, Inc.
- Wolters Kluwer N.V.
- Xero Limited
- The Sovos Compliance, LLC
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