Kerry-based fintech Taxamo has joined forces with consulting giant Deloitte to launch a new tax compliance service for digital marketplaces and their online sellers ahead of new EU tax rules.
Deloitte and Taxamo are collaborating to launch a new tax compliance service enabling the marketplaces and sellers to register for VAT, automatically determine the correct VAT treatment of sales, submit VAT returns and remit payments of VAT to tax authorities
The move is prescient as from January 2021, the European Union will introduce new VAT reporting requirements for digital marketplaces and their online sellers.
“Nine months from now, hundreds of thousands of online sellers will have new obligations to account for VAT in the EU on their sales”
Based in Killorglin, Co Kerry, the Taxamo team has a collective 30 years of experience in the payments and technology industry and is leading the way in technical solutions for e-merchants.
“The new VAT reporting obligations for online marketplaces and their sellers can only be met by applying technology to determine the correct VAT treatment of sales of goods and also to prepare tax returns,” explained John McCarthy, CEO of Taxamo.
“The launch of this new service is the result of many months of collaboration between Taxamo and Deloitte. Our new service will enable the entire VAT reporting process to be automated and deployed at the scale required of online marketplaces.”
Determining VAT for online sales in EU
The solution will be fully automated, underpinned by Deloitte’s tax compliance solutions and Taxamo’s technology platform, determining the VAT treatment of online sales.
“Nine months from now, hundreds of thousands of online sellers will have new obligations to account for VAT in the EU on their sales. European VAT rules have the potential to be complex to administer for these global businesses,” explained Mat Ellis, managing partner for tax and legal at Deloitte.
“Deloitte and Taxamo’s tax compliance solution will make VAT accounting for these businesses simple, automated and cost-effective. Online marketplaces will be jointly and severally liable for the VAT due from their sellers, so the service will enable marketplaces to manage the risk while, at the same time, allowing their sellers to access leading compliance services.”
Pictured above: Taxamo CEO John McCarthy
Written by John Kennedy (john.kennedy3@boi.com)
Published: 7 April, 2020
