What's happening on

01 January 2015

EU VAT laws are changing for electronic service, or ‘e-service’, providers. Today, in line with existing EU VAT rules, the VAT on e-services is charged based on the location of the merchant but, from 01 January 2015, the VAT on e-services must be calculated based on the end customer’s location.

Take a minute to watch our video for a brief explanation of the 2015 EU VAT changes.

Time is running out to be compliant



VAT calculation, storage and reporting

Taxamo provides a real-time Software as a Service (SaaS) solution for compliance with 2015 EU VAT rules on the sale of e-services. It is a unique end-to-end service that enables merchants to achieve full compliance with the rule changes, without impacting the existing customer journey.

Taxamo integrates with e-commerce websites and captures all of the required data for EU VAT calculation. Our solution uses a number of data points to identify the customer location – data captured as part of the payment process – and takes care of VAT calculation, evidence collection, EU MOSS settlement, and audit services.

  • Identifies EU and Non-EU transactions
  • Collects customer location evidence
  • Validates B2B transactions
  • Real-time VAT calculation across 28 EU States
  • Supports both dynamic and universal pricing

  • Stores customer location evidence
  • Calculates ongoing VAT liability
  • Provides VAT matrix management
  • Creates quarterly MOSS returns
  • Creates audit files for EU tax authorities
  • Securely archives data for 10 years, as mandated

Taxamo’s software technology allows seamless integration with hundreds of software systems. Our solution provides API libraries for all popular technologies (PHP, Node.js, Python, etc.) and integrates seamlessly with payment systems such as Stripe, Paypal, and many more.


Taxamo offers a simple solution to a complex problem. There are a number of benefits for e-merchants:


Saves time, money & resources

Out-of-the-box compliance service

Easy to integrate with current systems

Manages EU VAT rate changes

Saves evidence safely & securely



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2% per transaction

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Recommended when average sale value is below €10.

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€0.20 per transaction

+ €20 per month


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Pay nothing until 2015

  • VAT Calculation
  • 24/7 Online Portal
  • Quarterly MOSS VAT Returns
  • Automatic VAT Updates
  • Audit Reports
  • Email & Live Chat Support

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2015 Legislation

On 01 January 2015, European Union rules on the calculation of Value Added Tax (VAT) on broadcasting, telecommunications, and e-services are changing. This affects businesses and merchants selling e-services within the EU, as well as non-EU merchants selling into the EU. The goal of these changes is to improve European VAT compliance and level the playing field for all e-service providers.

2015 EU VAT Directive

A number of changes to VAT rules on the place of supply of services were agreed by the EU in 2008 to ensure taxation takes place where services, sold over the internet, are consumed. The change to the place of supply of telecommunications, broadcasting and electronic services (BTE or ‘e-services’) to non-business consumers (‘B2C’) is the last of those changes, and will take effect on 01 January 2015.

This change will mean that suppliers of e-services are obligated to account for VAT in the EU member states where their end customer is located and may become liable to register for VAT in those member states.

Suppliers of e-services affected by the new 2015 EU VAT rules changes must determine the place of supply of those services i.e. the location of the consumer, and need to support their decision by collecting two pieces of non-conflicting evidence.

Businesses will be required to keep records of the information/decision-making processes/systems used to determine the place of taxation, and store transaction data for 10 years after a sale.

All 28 EU member states have signed up to the EU VAT Directive.

Please see the following link for more information - EU Commission website

The Mini One-Stop Shop (MOSS) scheme

To ease the potential administrative burden created by the VAT Directive, the EU Commission has created the Mini One-Stop Shop (MOSS) scheme. MOSS will allow businesses to register with one EU member state and submit a single VAT return and payment each quarter for all their cross-border supplies of digital services.

MOSS is an optional scheme which involves businesses registering with one EU member state to declare all of the EU VAT due from their sales in the EU. In the case of EU businesses, this will, typically, be the member state where they are already established. Non-EU businesses must nominate an EU member state with which to register. If deciding against MOSS, the alternative is to register in every EU member state where the business has customers (non-taxable persons). This option can potentially mean registering with 28 separate tax authorities.

An e-service supplier who opts to use the MOSS scheme will have to submit quarterly VAT returns via a web portal to their nominated EU tax authority (known as the Member State of Identification). The e-service supplier will have to declare all of the VAT charged and collected in the EU member states where their customers are located. The EU VAT payments will be made to the Member State of Identification, which will then transmit the relevant funds to the EU member states where sales took place. This scheme is intended to simplify EU VAT compliance obligations for operators who would otherwise be required to have multiple VAT registrations.

Please see the following link for more information about MOSS – EU Commission website

About Us

Founded on a legacy of entrepreneurship and innovation, Taxamo exists to provide an EU VAT compliance solution to e-service merchants. The Taxamo team has over 30 years of experience in the payments industry and leads the way in technical solutions for e-merchants. Dedicated to designing and implementing revolutionary, real-time technology, Taxamo provides a unique end-to-end solution that enables merchants to comply with regulatory requirements as it relates to VAT calculation, evidence collection, MOSS returns and audit services.

If you would like to learn more about a tailored service, please contact us.

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