New Taxamo White Paper: Standardizing International Digital Tax Compliance

Share Article

Addressing legislative and technical pain points for digital merchants.

Taxamo White Paper

...burdens are increased as tax jurisdictions take a unilateral approach without thought to the international context of digital taxation, and the practical impact businesses have in implementing conflicting logic on a single platform.

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:

  • Practical complexities created by new digital tax laws
  • Challenges for lawmakers legislating in this area
  • Technical challenges facing digital merchants who need to comply with conflicting requirements across multiple regions
  • Five tech recommendations for tax authorities covering registration, tax calculation, filing and storage

Commenting on the release, Taxamo CEO John McCarthy said: “With this white paper, we are
laying out a common-sense, evidence-based approach that legislators can draw upon when drafting specific rules around taxing the digital economy.”

A downloadable version of the white paper is available through Taxamo’s website:

https://www.taxamo.com/white-paper-sttax-compliance/

GLOBAL TREND
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 New Zealand and Australia, announcing plans for digital tax laws to be introduced in October 1, 2016, and July 2017 respectively. These new regulations, in addition to the recent adoption by the OECD of guidelines recommending that countries take a “place of consumption” based approach to the taxation of digital goods and services, mean increased compliance burdens on digital merchants worldwide. These burdens are increased as tax jurisdictions take a unilateral approach without thought to the international context of digital taxation, and the practical impact businesses have in implementing conflicting logic on a single platform.

About Taxamo (https://www.taxamo.com)

Taxamo's global digital tax solution enables digital service merchants to comply with new international tax regulations. One simple integration meets all requirements on tax calculation, reporting and invoicing for a wide range of countries which have implemented new digital tax rules, offering digital service merchants a simple, cost effective and reliable way to comply. Taxamo launched with an EU VAT solution in January 2015 and has since expanded to support U.S. sales and use tax, Japanese consumption tax (JCT), and South African digital VAT, with further regions to be introduced before the end of 2015.

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.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Sarah Flaherty
Taxamo
+353 831536358
Email >
@taxamo
Follow >
taxamo

Visit website