Amazon's Finance Technologies Tax team manages tax computation, deduction, and reporting across global jurisdictions using the DynamoDB-tiered tax withholding system.
The system processes billions of transactions annually, requiring millisecond latency at scale and accurate tracking of individual transaction values for tax calculations.
Challenges include handling tiered tax rates based on cumulative thresholds and maintaining data consistency across high transaction volumes.
The solution involves API Gateway, Lambda functions, DynamoDB for tracking cumulative values, and handling error retries using Amazon SQS.
Implementation includes atomic conditional writes for updating transaction values and audit records, optimizing throughput and minimizing conflicts.
Performance evaluations show increased throughput with concurrency, but also highlight transient conflict trade-offs in highly concurrent scenarios.
The DynamoDB conditional write feature allows for simplified, scalable transaction processing without the need for optimistic locking.
Authors include Principal Solutions Architect, Principal Engineer, and Software Development Engineers from Amazon Finance Technology.
The system's proactive handling of ConditionalCheckFailedExceptions ensures data consistency and high scalability for concurrent transactions.
For those looking to implement similar scalable systems, leveraging DynamoDB features and concurrency control mechanisms is essential.