VAT Compliance Assurance
On July 1, tax compliance became a lot more complex for a lot more companies. That’s when the EU’s new slate of value-added tax (VAT) rules took effect.
The new EU VAT regulations impose additional compliance burdens and increased complexity with changes to rates, thresholds and remittance processes for all merchants – regardless of where they are located – that sell remotely into the EU. My colleague Peter Boerhof, Vertex’s VAT Director, has helpfully detailed the changes in several outlets, including this Vertex podcast and a recent Tax Matters post.
It’s important for tax experts within companies that are subject to these new VAT rules to understand their compliance obligations and be aware of the supporting technologies that can ease their VAT compliance burdens. For example, Taxamo Assure by Vertex, offers a complete solution for merchants to meet their new VAT compliance obligations via an innovative pay-as-you-go approach. The merchant pays a fee per parcel and, in turn, their VAT obligations – from calculation to registration to collection to remittance to compliance – shift to Vertex. The solution seamlessly calculates real-time VAT and invoicing on a merchant’s covered sales to the EU. As the merchant processes sales, the transaction details are tracked and Taxamo files and remits the VAT due.
The solution simplifies the process for merchants that are not equipped to handle remote seller obligations and prefer to focus on higher-value activities, such as enhancing customer experience and growing their businesses.
Given all of the other forms of uncertainty companies contend with right now, it’s helpful to know that VAT compliance complexity can be tamed.
For more on Taxamo Assure by Vertex, click here.