Taxamo Advantage automated VAT/GST calculations fit seamlessly into your online sales journey and provide a solid foundation for managing compliance requirements.
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).
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.
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.
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.
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.
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.
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.
Taxamo country-by-country and multi-currency reporting give you business-critical insight through CSV reports and five main customer data-driven dashboards/views:
*Tax threshold monitoring only applies to regions Taxamo supports.
Talk to a Taxamo sales consultant about how we can help support your global tax management strategyContact Sales