Sales tax in online trading – tax rates fully automated and on demand – eCommerce Magazin

The VATRules database knows all sales tax rates and rules that must be applied in the EU-27 countries as well as Great Britain, Norway and Switzerland and assigns them clearly to the respective product groups of the online retailer. The tax rates are played out fully automatically on demand, embedded in the order processes and applied.

Sales tax in online trading: Always the current tax rates thanks to the VATRules database

The second stage of the European Commission’s VAT digital package will be implemented on July 1, 2021. One of the most relevant innovations for retailers with regard to sales tax in online trading is the elimination of the different delivery thresholds depending on the EU country. Up to the respective limit values, retailers were able to pay the sales tax due on their consignments in their own country. The sales tax only had to be paid and reported in the country of delivery of the goods if this was exceeded. These delivery thresholds will now be canceled on July 1, 2021 and replaced by an EU-wide threshold (EUR 10,000). As soon as cross-border sales to private individuals within the EU are above this amount, traders in the supplier countries must register for tax purposes, apply the applicable VAT rates and pay and report the VAT to the responsible tax authorities.

“VATRules simplifies this process,” says Annett Schaberich, in-house tax advisor and Vice President Tax Compliance at eClear. “With the database, dealers always apply the currently applicable tax rates when calculating product prices. Updates or temporary changes are automatically taken into account. This minimizes costs and time, as corrections are significantly reduced. ”

“With eClear AG we have gained a strategic partner who can offer our customers a unique solution”

Thanks to the correctly calculated VAT, prices and margins can be optimized, especially with a view to local conditions. Once the product groups have been classified in the so-called assignment process, they can quickly enter other markets or new product ranges.

“With eClear AG we have gained a strategic partner who can offer our customers a unique solution in terms of tax considerations,” says Jan Giesel, founder, chairman and CEO of plentymarkets AG.

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