Taxamo Assure by Vertex is a service built specifically to solve these challenges for small to medium retailers in the UK, and can also be used by any UK-based merchant selling into the European Union (EU).
By integrating Taxamo Assure by Vertex into your eCommerce platforms checkout process, we are able to calculate the correct VAT rate for a basket of products, based on the product types and the customer’s delivery address.
Calculating the correct VAT rate for a merchant, means that Taxamo is viewed as facilitating a transaction from a tax perspective. This is similar to how an online marketplace can facilitate a transaction between a seller and a purchaser.
Crucially by facilitating the transaction, Taxamo is treated as the deemed seller when low value goods are imported into the EU, we are entitled to have an IOSS registration. This means that we are then able to assume liability for the remittance of VAT on the supply of low value imported goods in the EU, under the IOSS scheme.
From the customer’s perspective, they will pay a single VAT inclusive charge to the merchant, and receive an electronic VAT invoice sent from Taxamo.
From the merchant’s perspective, they will receive our IOSS number to pass to their parcel carrier to evidence that VAT is not due when the goods are imported into the EU. Taxamo will then charge the merchant for the VAT amount plus a small service fee for facilitating the transaction.
Updated 6 months ago