Pictured: John McCarthy, CEO of Taxamo
Deloitte and Taxamo are collaborating on the launch of a new tax compliance service for digital marketplaces and their online sellers.
The service, developed in response to new VAT reporting requirements from the European Union due to come into place from January 2021, is aimed at 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 solution will be fully automated, underpinned by Deloitte’s tax compliance solutions and Taxamo’s technology platform, determining the VAT treatment of online sales.
Matt Ellis, managing partner for tax and legal at Deloitte said:
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.
He added, “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.”
John McCarthy, CEO of Taxamo, said:
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. 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.