1StopVAT
can register businesses for VAT in numerous countries and ensure full
compliance with applicable VAT regulations. 1StopVAT has software that
tracks sales volumes and precisely identifies each customer's location.
Prepare a business for the upcoming VAT compliance checks wave with
1StopVAT during these disrupting times.
It is believed that countries' tax revenues will be significantly
impacted due to COVID-19 outbreak and lockdown of traditional
businesses, so there is no question that governments worldwide will
become more and more aggressive in collecting VAT from the remote sales
of digital services, and enforcement of VAT compliance checks for remote
sellers and providers of digital services will definitely increase significantly to cover money spent on the response to COVID-19 crisis. The World Bank Group expects to deploy up to $160 billion leveraged
loans over the next 15 months to help developing countries to respond to
the COVID-19 crisis and bolster economic recovery. Other major
economies are also implementing fiscal policies to respond to the COVID-19 crisis. As people around the globe have been forced into self-quarantine, an
increase in users can be monitored at online gaming, streaming, learning
and conferencing applications. While traditional businesses are being
shut down due to quarantine, performance branding company WITHIN has
announced that digital services revenues have increased by 268% at
2020.03.21 and conversion rates by 184% at 2020.03.19. The UK has already started VAT compliance checks of businesses
trading from overseas. To those, who won't comply, HMRC threatens that
it will send online marketplace providers a Notification of joint and
several liability'. Jointly and severally liable means that both
businesses and the online marketplace provider may be required by law to
pay any UK VAT due. This could result in removing a business from
the online marketplace. It will be suspended to trade in the UK until
its VAT and payments are up to date. It could then take six weeks for
the online marketplace provider to allow the seller to use their
platform again. Similar VAT compliance
checks have been started in Turkey and Norway. Tax authorities of these
countries are collecting payments data to remote sellers wired by their
residents and reassessing due VAT of such remote sellers according to
collected payments data. Besides banning of digital business activities,
if remote sellers will fail to settle reassessed VAT liabilities,
Turkish tax authorities are empowered to withhold payments from Turkish
banks and other financial institutions to remote sellers and may collect
VAT debt through payment services providers. More and more counties across the globe levy VAT on digital services
provided to their residents. Meaning, if the business provides a B2C
digital service, the seller must register for VAT in a particular
country, charge a particular VAT rate of the country, which the customer is the resident of during the sale, fill VAT returns and pay VAT in that country. To determine the customer's residency, digital service providers must
collect at least two pieces of non-conflicting location evidence and
most digital services providers collect a customer's IP address as the
most reliable source of information about a customer's place of
residence. This can be challenging in certain situations. For example,
if the customer uses VPN, digital services providers may not be able to
identify such a user's residency accurately, as IP addresses can be
distorted by VPN users, and this could lead to penalties for late
registration and late payment interest. Rates vary from 10% to 200%,
depending on each country. Tracking sales volumes, identifying customer's place of residence and
looking for the tax consultants in each country where businesses supply
digital goods and services is cost-inefficient and time-consuming. 1StopVAT
understands that businesses' top priority is to focus on its activities
rather than on taxes, therefore, 1StopVAT is committed to back-up
businesses in VAT matters. source - https://www.newswire.com/news/1stopvat-sees-more-attention-on-vat-compliance-for-digital-service-21144953
Company Name | Contact Person | Contact Number | Email Id | Website | Address |
---|---|---|---|---|---|
1STOPVAT | 37062046060 | info@1stopvat.com | https://1stopvat.com/ |
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