Oct 7, 2015
New product features offer a single integration for international digital tax compliance.
Co. Kerry, Ireland: October 7, 2015 – Delivering on its promise to support digital businesses wherever they sell, Taxamo, a global digital tax solution, has expanded its flagship support for EU VAT and launched support for U.S. Sales Tax & Japanese Consumption Tax (JCT).
Tax on digital sales was introduced in some U.S. States as far back as 2003 and on October 1, 2015, Japan became the 36th country to introduce new ‘place of supply’ tax rules. Similar EU VAT rules have been in place since January 2015 with several other regions, such as Australia and New Zealand, already announcing plans for digital tax laws to be introduced in 2016 and 2017.
“Many businesses spent significant time and money building a customer solution to comply with the EU’s place of supply rules, only to find that they now have to go back to the drawing board as they need to change their platforms to comply in other countries,’ said Taxamo CEO John McCarthy. ‘As Taxamo is 100% focused on tax on digital goods, we have amassed the expertise to manage this headache on behalf of businesses through a single integration.’
A critical concern voiced with the introduction of international digital taxation is the variation of rules between countries. While similar in nature, digital tax rules vary by region in terms of qualifying sales thresholds, specific tax calculation requirements and data retention periods.
‘A big issue is that national laws are drafted in isolation and businesses have to code solutions that take, often conflicting regulations, into their platform,’ continued Mr. McCarthy. ‘Given that currently Taxamo businesses are making sales in just about every country in the world, it is unimaginable to think that they would have to spend time and money adjusting their systems to comply. Taxamo assumes that burden and offers businesses a sustainable and scalable option for managing digital tax obligations.’
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