ez-EU - an easy EU VAT solution

Some non-EU companies have taken the view that it's easier to ignore the tax, or argued that European courts will have no jurisdiction over them.

In order to comply completely with the EU requirements on collection and payment of VAT, international digital goods suppliers potentially need to take on a number of additional administrative and reporting tasks, including:

• displaying retail prices to customers with VAT amount added
• calculating appropriate VAT rates for a variety of digital goods and services, at rates which vary from country to country between 5% and 25%
• displaying tax-inclusive prices in the customer's own currency
• filing separate tax returns to up to 25 different countries in a variety of languages
• accounting for the European tax in domestic accounts and reporting

Penalties

However, there are a number of important reasons why all non-EU companies should strive to be tax-compliant.

• possible penalties of up to 240% of the tax due
• back-dated collection of taxes on all goods and services supplied
• possible competition lawsuits from competitors who are tax-compliant and resent competitors being able to undercut them by displaying lower prices
• the possibility of intellectual rights of non-compliant companies not being protected by European governments
• the negative public image of being labeled a 'tax cheat'

Why not?

With Intecard's simple free solution, there's no need to risk the penalties of non-compliance.

 

> Find out more about Intecard's free EZ-EU solution for digital merchants