EU VAT CLEARING FOR ECOMMERCE BUSINESSES

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WHAT YOU SHOULD KNOW ABOUT B2C OVERSEAS DELIVERIES

Almost 750.000 eCommerce shops generate a turnover of approximately 450 billion EUR per year in the 28 member states of the EU, 15% of which is cross-border trade. Taxation according to the country of destination takes effect in this case if the supply threshold is exceeded. This means that the VAT of the country of dispatch is to be charged and paid to the tax office of the country of destination.

WHAT IS CLEARVAT

ClearVAT is a One Stop Shop provider that allows eCommerce businesses to distribute their goods within the member states of the European Union in full compliance with the VAT ruling of the respective country. ClearVAT is also a fully PCI certified Payment Service Provider (PSP) which connects your online shop with its acquiring bank as well as processing a wide range of payments (cards, electronic cash, invoices, PayPal, prepayment etc.) simply.

WHY DO YOU NEED CLEARVAT

Evasion of foreign VAT is an offence under German law according to §370 par. 6 of the tax code and can lead to up to 5 years of imprisonment. It is generally the consultants of investors and financial backers that notice the incorrect calculation of tax debts before the tax authorities—a real deal breaker in investment rounds.

PREPARE FOR YOUR ECOMMERCE STORE FOR EXPANSION INTO EUROPE!

BUY THE RULES!

European eCommerce businesses unwittingly evade about 14 billion Euros of VAT every year through cross-border trade—a high risk for CEOs and investors.

ClearVAT is the first pan-European payment service provider for the lawful calculation, collection, and payment of the VAT owed through cross-border trade with all 28 EU member states.

BUY THE RULES

DISPLAY

Heidi from Germany is looking for a t-shirt in a French fashion shop.

The French eCommerce supplier cannot show her the shirt on the product page with French VAT (20%), it has to be displayed with German VAT (19%). An eCommerce provider has to display all items with the respective VAT of the country in all 28 EU member states, as stipulated by the EU Distance Selling Act.

For this, ClearVAT offers the solution DISPLAY. The currently valid VAT rates are dynamically delivered for all product groups and items over an interface.

THRESHOLD

Heidi enters her billing address, but wants to send it to her niece Danuta in Poland as a present. Now the VAT rate has to change dynamically from 19% German VAT to 23% Polish VAT in the checkout of the French retailer. And not only that, the French shop also has to pay the Polish VAT to the state of Poland, as stipulated by the mail order business regulation of the EU. There is an exception for the French online T-shirt shop, however. The Polish VAT only needs to be charged if a particular threshold is surpassed. In Poland this is 160.000 Polish Zloty (ca. 37.700 EUR) per year. Every one of the 28 EU member states has a different threshold, however, and currency fluctuations also have to be taken into account.

For this, ClearVAT offers the solution THRESHOLD CONTROL. The thresholds are monitored and the correct VAT is automatically calculated and displayed dynamically for every item over the interface.

COLLECT & CLEAR

Heidi has sent Danuta the T-shirt. The French shop has in the meantime become popular in Poland and ships for over 40.000 EUR per year. The threshold is thus surpassed and the French eCommerce provider is obliged to charge, collect, and pay Polish VAT to the Polish financial authorities. If businesses want to trade in the whole of Europe, they have to register with 28 financial authorities and for each submit a VAT return in 22 languages. This is prescribed by EU law.

For this, ClearVAT offers the solution COLLECT & CLEAR. The sum gets collected automatically from the customer and the correct amount of VAT is paid to the respective financial authorities.

6 GOOD REASONS FOR CLEARVAT

PCI certified Payment Service Provider

Fully certified PCI Payment Service Provider (PSP), optional routing over an existing PSP (connected to over 100 PSPs in Europe)

Dynamic delivery of item-specific VAT

Dynamic delivery of item-specific VAT for all 28 EU member states on the product page and in the checkout (e.g. when changing from billing address to delivery address)

Collection and payment of legally owed VAT

Automatic collection and payment of legally owed VAT for all 28 member states of the European Union

One interface for everything!

Only one interface for everything! Easy to switch between PSP providers, acquiring banks, shop systems and in future also ERP and accounting systems, carriers, express services, and other service providers in the Universal Gateway.

Easy installation

Easy installation of plugins (standard software available for over 30 of the most common shop systems).

Compliance Standards

Compliance Standards—be it investor due diligence, competition law, or a tax audit, the numerous and complex regulations of online mail order business are easily navigated with ClearVAT.

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PREPARE YOUR ECOMMERCE STORE FOR EXPANSION INTO EUROPE NOW!

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SUPERVISORY BOARD

PEER STEINBRÜCK

Chairman

German Minister of Finance (ret.)

PROF. DR.ANDREAS HACKETHAL

Vice Chairman

Professor of Finance, Frankfurt/M.

PROF. DR. GESCHE JOOST

Member

Member of the Supervisory Board SAP

MANAGEMENT BOARD

ROMAN MARIA KOIDL

Chief Executive Officer

OLIVER PORT

Chief Technology Officer

NIKLAUS SANTSCHI

Senior Advisor - NXD

CEO B+S Card Service GmbH