Merchants are charged a flat service fee per transaction for the service. There are no monthly or annual fees, and the VAT amount Vertex collects from the merchant is exactly the amount they collect from their customer.
This means merchants selling into the EU with variable sales volumes (such as seasonal goods) or those uncertain of the potential size of the EU market can use the service without concern about ongoing fees.
The standard rate of VAT differs across the European Union (EU) member states. Additionally countries may choose to specify reduced VAT rates for certain goods. These rates can be permanent reductions or temporary reductions, such as has occurred during the pandemic.
Taxamo Assure by Vertex leverages the extensive and detailed tax knowledge of Vertex to provide the correct tax rate to a merchant.
This benefits a merchant in a number of ways. It removes any potential liability for charging too little VAT on a transaction. This is due both to the rates provided being correct, and also as the liability sits with Vertex.
It also avoids the potential competitive disadvantage of charging too much VAT on a transaction. Finally it avoids the need to maintain any look up tables of VAT rates in a merchant’s eCommerce platform.
Universal pricing is where a product is sold for a standard price in different countries where the VAT component of the total sales price may differ. As the VAT amount (as a portion of the sales price) changes, the margin on the sale will vary also.
Taxamo Assure by Vertex can either calculate the VAT inclusive price (and VAT amount) from the VAT exclusive price, or can calculate the VAT exclusive price (and VAT amount) from a VAT inclusive price.
This allows a merchant to sell for a single price across jurisdictions, if they wish to present a simplified pricing structure to their customers across countries.
For supplies of low value imported goods, Taxamo is treated as the deemed supplier when the goods are sold to the EU consumer. From a VAT perspective, the merchant supplies those goods to Taxamo and Taxamo resells those goods to the end customer. Taxamo charges the consumer VAT on the sale and remits that VAT to the tax authority via its IOSS return. Taxamo will also send a VAT invoice to the customer which shows the correct amount of VAT due on the supply of the low value imported goods in the customer’s member state. This invoice can be customised to reflect the merchant’s brand.
The merchant provides Taxamo's IOSS number to their parcel carrier so no import VAT is payable when the low value imported goods arrive in the EU.
This removed the burden of managing and remitting VAT due in each member state on the low value imported goods from the merchant.
Taxamo will charge the merchant for the exact VAT amount they have collected from the customer and remitted to the tax authorities under the IOSS scheme.
Taxamo Assure by Vertex can be integrated into a merchant’s eCommerce platform either directly via simple REST-based APIs – an industry standard technology, or via a prebuild extension for their eCommerce platform.
Currently there is an extension for Adobe Commerce's (formerly Magento) eCommerce store, and others are in development.
REST-based APIs are familiar for web developers, enabling rapid integration into a merchant’s eCommerce platform. For merchant’s using Adobe Commerce, they can integrate with a “no-code” approach, using the Adobe Commerce plug-in.
Updated 2 months ago