Tax calculation for
VAT/GST

Automated real-time VAT/GST calculations for online transactions

Taxamo Advantage automated VAT/GST calculations fit seamlessly into your online sales journey and provide a solid foundation for managing compliance requirements.

Tracking global legislative changes

Tracking Legislative Changes

We update rules and rates in line with legislative changes, so you don’t need to put your own resources into tracking developments across multiple countries and regions (a big task - as an example, over 70 international tax authorities amended their rules on cross-border digital sales in the 5 years between 2015 and 2020).

Taxamo Advantage VAT/GST functions include:

Real-time customer location

Real-time customer location determination

Business to Business

B2B sales validation

Compliant Invoicing

Compliant invoicing

Tax Threshold Management

Tax threshold management

Foreign Exchange

Foreign exchange rate application

Real Time Reporting

Real-time VAT/GST reporting

Real-time customer location

Real-time customer location determination

Every time a customer goes through your online checkout, Taxamo’s unique solution determines the customer location in real-time and applies the correct VAT/GST treatment and calculation. The system also supports the collection of varying evidence types to meet the needs of different tax jurisdictions.

Location determination is by country or by region (for example, Canadian province or Indian state) as needed. Taxamo advanced location determination options allow you to design your own customer location rules to ensure the correct tax jurisdiction is allocated.

Business to Business

B2B sales validation

Taxamo’s B2B service validates business tax numbers in real-time. This includes offering reverse charge (no VAT/GST) to business customers in countries that support the reverse charge rule.

For each country, you can choose one of the three following validation options:

  • Full validation of business customers through APIs with business list databases.
  • Flexible workflow validation processes through syntax.
  • Rechecking of VAT/GST numbers for subscriptions at each billing interval, (for example, monthly or annually).
Compliant Invoicing

Compliant invoicing

Taxamo offers compliant invoicing across multiple tax jurisdictions, making it simple to issue invoices that follow specific country/region rules.

From the most basic rules to the most complex, you’re covered.

Complex invoice rule support includes:

  • Issuing invoices in the local language
  • Adding the supplier or authorized representative’s signature
  • Including the local accounting code for what you are selling
  • Including a reverse charge message for B2B sales
  • Taiwan eGUI
  • And more…

Flexible invoice delivery options

You can choose to deliver invoices in any of the following ways:

  • Via a link in an email to the customer
  • Using a URL
  • As an embedded image in an email
  • You can also pull the invoice into your system as a PDF or HTML file so it can be accessed locally in the future - for example, in your customer dashboard.
Tax Threshold Monitoring

Tax threshold monitoring

Each taxing region has its own rules about when a business becomes liable to pay tax on digital sales. With Taxamo’s unique global dashboard, you can track your online sales against the tax threshold rules set by each region, giving visibility where you may need to register for tax.

Examples of varying thresholds worldwide include:

No threshold for any supplier - countries with no threshold include Serbia, Russia, Albania and Gulf Co-operation Council (GCC) nations. Suppliers must register and file from the first sale they make in the region.

Threshold for micro-businesses established in the European Union (EU) only - on January 1, 2019, the EU introduced an annual threshold of €10,000 in relevant sales across the EU for EU micro-businesses. Previously, there had been no threshold.

No threshold for a foreign supplier - some countries only set a threshold for domestic businesses and require foreign suppliers to register from the first sale. Examples include Bahrain, Saudi Arabia, UAE, and India.

Threshold based on worldwide sales – Switzerland is one example of a country that uses a worldwide sales figure (CHF 100,000 - approx. USD$99,350*). if you have worldwide sales over this figure you are liable for tax in Switzerland from your very first sale.

*Note: Source: xe.com, February 15, 2019.

Foreign Exchange

Foreign exchange rate application

Every tax jurisdiction dictates which exchange rate source must be applied to invoices and reports and which time point to use (time of invoice, time of the transaction, or end of the reporting period). Taxamo provides a robust mechanism that ensures you source and apply the correct rate for every sale.

Real Time Reporting

Real-time VAT/GST reporting

Taxamo country-by-country and multi-currency reporting give you business-critical insight through CSV reports and five main customer data-driven dashboards/views:

Global dashboard

  • Track global sales on a customer location map, and get warnings of approaching and exceeded thresholds so you can take action*
  • Monitor sales data and filing dates for each country

Transaction reporting

  • Browse transactions or search for individual transactions
  • See individual transaction details such as location evidence, invoices, and custom fields.

Refund reporting

  • See summary and detailed reports of refunds
  • Easily view the original transaction and related refunds

Tax settlement reports

  • Run summary and detailed tax settlement reports to help you to file your tax return

EU VIES and domestic reports for EU businesses

  • Get data for VIES and other domestic reporting needs.

*Tax threshold monitoring only applies to regions Taxamo supports.

Add-on compliance services

As a Taxamo Advantage client, you can avail of further compliance services to help you register, file, and remit tax where you have a tax obligation. Our expert hands-on compliance services offer end-to-end VAT, GST and US sales tax management.

Learn More

Get in touch

Talk to a Taxamo sales consultant about how we can help support your global tax management strategy

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