Vertex for Marketplaces

Accelerate your marketplace growth while staying in compliance with Europe VAT requirements.

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VAT/GST management for marketplaces

Online marketplace operators selling into Europe face a complex challenge of VAT/GST liability, tax calculation, and currency conversion according to the latest marketplace facilitator rules in every country. Making sure the correct VAT/GST is charged on every invoice, and the VAT amount is remitted to the proper jurisdictions each month adds steps to the marketplace operation.

Vertex for Marketplaces integrates with your e-commerce or marketplace platform to automate invoicing and tax, keeping you current on the latest country and local rates and rules, and streamlining the seller and customer journey so you can focus on accelerating growth.

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Explore the Features, Benefits & Highlights

Continually updated tax rules and rates keep you up to date.

A continually updated database of tax rules and rates support the latest regional and jurisdiction-specific VAT/GST requirements for Europe. You’ll increase confidence in tax determination and reduce audit risk.

Automated B2B validation streamlines VAT management.

Validate business tax numbers in real-time allowing your business to offer reverse charge (no VAT/GST charge) to business customers in countries that support the reverse charge rule.

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Assessing the key factors that determine tax liability.

An automated assessment of the four key factors for assignment of VAT/GST liability for online marketplaces - where the customer is, what the goods are, what the value of the goods are, and where the underlying seller is.

A real-time tax determination engine.

Robust calculation engine delivers tax calculation per line item according to product categorization, tax liability rules, VAT/GST rates, and currency conversion.

Compliant invoicing made easy.

Whether your sales now require multiple invoices per basket, chains of invoices from seller to platform to customers, self-billed invoices, or up to 27 EU invoicing requirements to comply with, it’s all automated in the sales journey including with buyer and back-to-back invoicing.

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APIs enable flexible integration and scalability.

Integrate the solution to your e-commerce or marketplace platform using APIs. Once integrated, merchants can automate the addition/updating of products from their source systems via an API call.

Optional add-on services for registration and compliance.

Contract with one of our service provider partners for registration services and monthly compliance services for marketplace operator and sellers – including report generation, filing, and remittance to taxing jurisdictions.

What is Line-Item Liability Assignment (LILA)

LILA is the real-time determination of tax liability at the line-item level. For example, in a customer’s checkout basket there may be multiple products from different sellers and for different prices. It is conceivable that each line item also results in a different tax liability assignment. The marketplace operator could be liable for the collection and remittance of tax on some products, while the sellers on the same marketplace may be liable for tax collection/remittance on others. The LILA feature in Vertex for Marketplaces automatically calculates how thresholds and the origin of the goods may affect liability, including converting the sale currency to the threshold currency where applicable.

EU 2021- The impact for Marketplaces

  • Marketplaces will now become deemed suppliers for VAT/GST in most common scenarios and must charge VAT/GST at point of sale 
  • The low value goods VAT/GST exemption will no longer apply 
  • A new pan-Europe sales threshold for customer location-based VAT/GST will now apply on all sales within the region 
  • The launch of new Import One Stop Shop (IOSS) and One Stop Shop (OSS) schemes to avoid the need for multi-country registration and reporting 
  • New record-keeping regulations are now applicable for marketplaces, regardless of whether they are deemed sellers for VAT/GST purposes 

PRODUCT SHEET

Discover More about Vertex for Marketplaces

  • Data Sheet

    Product Details: Vertex for Marketplaces