25% of global VAT/GST to come from digital economy by 2020

Thu Nov 3, 2016

Killorglin, Ireland – Taxamo, market leader in the provision of digital tax solutions introduces Taxamo Assure: a new service removing the VAT/GST burden for digital businesses.

The global economy is forecast to be worth over $98tn by 2020 and research from Accenture has indicated that the digital economy will make up over $24tn of this. Tax authorities around the world are waking up to the potential black hole in VAT receipts this represents by introducing rules to tax cross border digital sales. Taxamo Assure ideally positions digital businesses to safely take advantage of the booming global digital market. By integrating with Taxamo Assure, digital businesses can operate globally with complete VAT/GST compliance and confidence.

“Quite simply Taxamo Assure is the most comprehensive, cost effective and secure global digital VAT/GST solution in the market today,” said Taxamo CEO John McCarthy.

“Our goal is for Taxamo Assure to support every country that taxes foreign digital sales, ensuring peace of mind for our customers who have ambitions to sell globally, now and into the future.”

How will Taxamo Assure work

Taxamo Assure assumes the VAT/GST liabilities for all sales in supported regions by acting as an interface, thereby becoming part of the digital supply. Taxamo Assure will assume the liability and calculate, collect, report and remit VAT/GST on these sales thereby massively reducing global compliance risks and costs for the digital merchant, all without requiring the business to change payment processor.

By Taxamo Assure taking the VAT/GST liabilities it means digital businesses need not worry about:

  • Registering with global Tax Authorities for VAT/GST liabilities.
  • Reporting VAT/GST for all countries/regions where the business has the VAT/GST liability.
  • Managing complex multi currency VAT/GST liabilities.
  • Storing sensitive transaction data for long periods of time for foreign tax audits.

Stress-free global sales

One simple integration allows digital businesses to pass global VAT/GST liabilities to Taxamo. Taxamo gives digital businesses the certainty needed to remain VAT/GST compliant in the ever-changing global economy.

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

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