Payments technology company Taxamo and Deloitte have teamed up to introduce a new VAT compliance service for digital marketplaces and their online sellers.

The service is a response to new VAT reporting requirements from the EU, due to come into force from next January, specifically for digital marketplaces and online sellers. 

According to the two firms, the tax compliance service will enable marketplaces and sellers to register for VAT, automatically determine the correct VAT treatment of sales, submit VAT returns and remit payments to tax authorities.

This will be a fully automated process, they say, “underpinned by Deloitte’s tax compliance solutions and Taxamo’s technology platform”.

Deloitte partner Mark Ellis said: “Nine months from now, hundreds of thousands of online sellers will have new obligations to account for VAT in the EU on their sales. European VAT rules have the potential to be complex to administer for these global businesses.

In Association with

“Deloitte and Taxamo’s tax compliance solution will make VAT accounting simple, automated and cost effective. Online marketplaces will be jointly and severally liable for the VAT due from their sellers, so the service will enable marketplaces to manage the risk while, at the same time, allowing their sellers to access leading compliance services.”

Taxamo chief executive John McCarthy added: “The new VAT reporting obligations for online marketplaces and their sellers can only be met by applying technology to determine the correct VAT treatment of sales of goods and to prepare tax returns. 

“The launch of this new service is the result of many months of collaboration between Taxamo and Deloitte, and will enable the entire VAT reporting process to be automated and deployed at the scale required of online marketplaces.”

Taxamo has provided payments solutions for more than 30 years and is now focused on technical solutions for e-merchants, processing billions of euros every year.