Taxamo develops EU VAT compliance offering in line with new directive

Thursday 5 June 2014 14:14 CET | News

Taxamo, a full end-to-end e-service VAT service provider, has developed a EU VAT compliance service which enables companies to comply with the new VAT directive.

Taxamo integrates into the ecommerce websites and payment service providers (PSPs). Taxamo also handles MOSS registration and filing on behalf of its clients. MOSS (Mini One Stop Shop) allows companies supplying e-services to non-business customers in the EU to account for the VAT due on their sales via a single web portal.

Merchants who sell e-services such as music streaming, on-demand film streaming, software downloads and downloads of images to consumers within the European Union will have to comply with new rules on how much VAT to charge, beginning with the 1st of January 2015.

Until now, VAT has been charged based on the locational factor of the company selling the product. However, the new regulations oblige merchants to charge VAT depending on the localization of customers, that is either within or without of EU’s borders. The rule change covers the supply of broadcasting, telecommunications and electronic services and only affects B2C sales.

Greg Birdthistle, Head of Business Development at Taxamo explains that choice is not an option for merchants in this respect and that the company’s platform enables e-service providers selling into and within the EU to outsource their VAT compliance system.

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Keywords: EU, taxamo, VAT, directive, merchants, compliance, ecommerce, online sales, B2C
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce