A big issue is that national laws are drafted in isolation and merchants have to code solutions that take, often conflicting regulations, into their platform
Co. Kerry, Ireland (PRWEB UK) 7 October 2015
Delivering on its promise to support digital merchants 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 merchants 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 merchants 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 merchants have to code solutions that take, often conflicting regulations, into their platform,’ continued Mr. McCarthy. ‘Given that currently Taxamo merchants 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 merchants a sustainable and scalable option for managing digital tax obligations.’
Taxamo is a privately held company located in the south west of Ireland. Existing Taxamo customers include WooThemes, BitTorrent, Penguin (Random House) and NTT Communications, among others. In addition, Taxamo has announced a number of strategic partnerships including Braintree Payments, WooCommerce and Rainmaker (by Copyblogger).
Taxamo is a global digital tax solution that enables digital service merchants to comply with new international digital tax laws. With one simple integration, merchants can meet the requirements of international digital tax laws on tax calculation, reporting, and invoicing. Taxamo launched with an EU VAT solution in January 2015 and has since expanded to support U.S. Sales & Use tax and Japanese Consumption Tax (JCT), with a further three regions to be introduced before the end of 2015.
Sarah Flaherty (email@example.com)