New features improving international digital tax compliance for merchants

Tue Feb 2, 2016

Standing still in the rapidly evolving world of digital taxation was never an option for us here at Taxamo.

That is why we have improved our market-leading digital tax compliance solution. Here are the recent updates to the Taxamo digital tax compliance solution:

1. Product-specific checkout form

We know the checkout form is a crucial element of online business. It is, typically, the final frontier between online window shoppers and that priceless customer. We have improved our checkout form offering with the following updates:

  • Merchants can now configure the Taxamo checkout form to accept a set of predefined products

  • Each product checkout is triggered via the Taxamo.js overlay or with a customised link.

  • Once enabled, a link to the checkout form that you can use from your site will be created automatically

  • The redirect URL and order confirmation message can be set

  • It is also possible to block sales on unconfigured products to lessen the burden of order verification

  • This feature can be configured in your merchant portal by following this path: My Account (top right) > Taxamo Checkout > Products (fourth tab on left side panel)

Taxamo checkout form

2. Webhooks

Taking best practice in API design, Taxamo now allows merchant software to subscribe to events and notifications related to transactions processed by Taxamo. This gives Taxamo customers unparalleled flexibility in how they, and the services they use interact with Taxamo.

But wait, there’s more. To help clients easily make full use of Taxamo’s APIs, Taxamo has also integrated into Zapier. This will allow customers to easily use Taxamo in conjunction with services such as Xero, QuickBooks, Dropbox, Google Drive, Evernote, Slack, Geckoboard, Salesforce, MailChimp – and many more!

This is how the webhook functionality with Taxamo will operate:

  • Merchants can now receive instant notification of events from Taxamo to their app

  • Taxamo will POST the data in JSON to the URL provided

  • The events available are: transaction.confirmed, transaction.created, transaction.updated, payment.created, and refund.created

  • This feature can be configured in your merchant portal by following this path: Integrate (second option at top right) > Webhooks

International digital tax webhooks

Note: You can access more information about the Taxamo-Zapier webhooks here

3. New levels of reporting

Reporting is a fact of life for businesses – we acknowledge this fact and have moved to further improve our reporting suite.

We have added two new reports under the European Union tax settlement section (left side of merchant portal) to assist with domestic tax filing for digital service merchants.

These new reports are EU Domestic (called ‘Domestic’) and EU B2B (called ‘VIES’ after the European system for validating business VAT numbers):

A. EU Domestic

Domestic reports for the EU will provide the user with summarised sales and VAT data for the selected period.

Three line items are provided, giving values for domestic sales, EU B2B sales, and the combined figure for all of merchant’s international sales.

EU Domestic Report

There are options to filter by the following criteria:

  • Settlement country: this will default to the MOSS Country
  • Currency: this will default to the currency set for MOSS
  • Report period: available by Month, Quarter or Year
  • Date of ECB rate applied: in cases where merchants sell in currencies other than their domestic currency, these values need to be converted to a single currency. The merchant can choose to use the ECB rate from the ‘Order date’, ‘Day before order date’ or the ‘Last day from selected date range’.

B. EU VIES (B2B)

The EU B2B report will provide the user with summarised data for their B2B sales. This includes the value of sales grouped by the VAT number of the B2B consumer for the selected reporting period.

The merchant must ensure their VAT number is shown in the TAX ID field.

EU VIES report

The report can be filtered by the following criteria:

  • Settlement country: this will default to the MOSS Country
  • Currency: this will default to the currency set for MOSS
  • Report period: available by Month, Quarter or Year
  • Date of ECB rate applied: in cases where merchants sell in currencies other than their domestic currency, these values need to be converted to a single currency. The merchant can choose to use the ECB rate from the Order date, Day prior to Order date or the Last day from selected date range
  • Report format: The report can be downloaded in the following formats:

    • Generic CSV

    • Generic XML

For the UK there is an additional version available: EC Sales (HMRC).

4. Support for Norway digital tax compliance

Taxamo has added Norway to the list of countries that it supports for digital service sales. Norway’s VAT on eServices (VOES) system was launched in July 2011.

The VOES system has since raised €266.5m for the Norwegian government, and has been deemed a resounding success – Taxamo now supports compliance with the VOES system .

This support offering includes the following:

  • Customer location detection

  • Evidence storage in accordance to the Norwegian tax authority regulations

  • Threshold monitoring for digital sales to Norwegian residents

  • Tax rate calculation

  • Tax settlement reports for the Norwegian VOES system

  • Automatic calculation of reports in NOK with the exchange rate required by the Norwegian tax authority

  • B2B VAT number verification with the BRREG system

  • Data retention as per the requirements in Norway

Note: Taxamo content is created for guidance only, please consult your local tax advisor.

Contact us to find out more about our solution