Addressing legislative and technical pain points for digital merchants. While merchants struggle to comply with varying and conflicting digital tax laws from around the world, a new white paper released by Taxamo outlines a number of recommendations for tax authorities that if adopted, would greatly ease the burden of compliance for digital merchants.
Taking recent tax changes implemented in Europe, Japan, and South Africa as case examples, the white paper, ‘Standardizing International Digital Tax Compliance’ provides detailed background and guidance on:
On Monday, October 5, the Organisation for Economic Cooperation and Development (OECD) released their final BEPS report including a section on ‘Addressing the Tax Challenges of the Digital Economy’.
The report – according to KPMG in the UK – is seen as the biggest rewrite of the international tax landscape since the League of Nations proposed the first bilateral tax treaty in 1928. The OECD approach has indeed been exhaustive featuring 23 discussion drafts; 12,000 pages of commentary, and 11 public consultations.
The second VAT Mini One-Stop Shop (MOSS) return is due within 20 days of the end of the second quarter. that is: July 20.
Merchants who have registered with the EU’s new MOSS system are always allowed 20 days from the end of each calendar quarter to submit their VAT MOSS return to their chosen Member State of Identification (MSI).
The MSI is the EU tax authority with which a merchant registers with for the purposes of declaring all of the VAT collected on their pan-EU supplies.
Taxamo’s integration with WooCommerce enables full compliance with 2015 EU VAT rules for digital sellers. WooCommerce, the world’s most popular e-commerce platform, today announced an integration with global digital tax experts, Taxamo. Taxamo offer an end-to-end solution for compliance with new 2015 EU VAT rules on the sale of e-services and digital goods.
The integrated WooCommerce Taxamo plugin enables any e-commerce business to quickly adjust their website to enable full compliance by allowing them to:
Few realize that rules regarding the supply of services by US digital companies to customers in the EU have been in place since July 1, 2003.
The rules may have existed but compliance with the VAT on eServices (VOES) scheme as it was called had been “mixed and indifferent”, according to Andrew Webb, of the UK’s tax authority HMRC. Mr Webb was speaking at a Taxamo-organised webinar in London prior to the introduction of the new rules.
Looking for the definitive list on MOSS registration? Look no further.
MOSS (the Mini One-Stop Shop) is a system designed to – as the EU Commission has previously stated – ‘ease the administrative burden’ on digital service merchants.
MOSS web portals across the EU are opening to accept registrations from merchants ahead of the new EU VAT rules due to come into effect on January 1, 2015.
The tax authorities of member states operate the MOSS web portals.
You asked us and now we answer your questions about the new EU VAT rules. The 20 questions in this blog post were posed by participants – online and in person – during Taxamo’s seminar in London. Our full EU VAT event is online here.
1. How is it determined who is making the digital service supply? Article 9(A) of the implementing regulations outlines who will be affected by these new cross-border rules.
New EU VAT rules hit previously exempt UK businesses.
Major VAT rule changes impacting how tens of thousands of UK e-service providers do business in the EU are less than four months away, yet the majority of those affected are unprepared and may be at risk of heavy non-compliance penalties.
Technology provider Taxamo, who offer software that helps companies navigate and process the new rules, say that e-service merchants, many of whom are small-to-medium sized businesses and were previously small enough to be exempt from UK VAT rules, are ill-equipped to deal with the significant obligations that come with the 2015 rules changes.
The VAT explanatory notes (final discussion took place on Monday, February 17) were drafted to provide a better understanding of the legislation adopted by the EU in October 2013. The notes themselves do not replace VAT committee guidelines which has its own role in the process. They are a guidance tool for businesses to clarify the practical application for of the new rules for BTE (broadcasting, telecommunications and electronic services).
The VAT Information Exchange System (VIES) was put in place by the EU to assist in the policing of the new VAT arrangements from January 1, 1993. Under the VIES legislation, all VAT-registered traders who make intra-community supplies of goods must furnish the relevant EU member state tax authorities with a VIES statement listing such supplies.
Under the new VAT system intra-Community supplies of goods are exempt from VAT in the member state of despatch when they are made to a taxable person in another member state who will account for the VAT on arrival.
As of the start of 2015 there will be new EU B2C VAT rules for e-service providers. To accompany the new system, e-service providers will have the option of using the single VAT declaration scheme – a mini one-stop shop (MOSS) – or opt to declare VAT separately in each EU member state in which they do business.
MOSS also has two separate optional schemes, one for non-EU businesses and one for EU businesses.