The EU VAT Regulation 2015 changed VAT rules so that VAT is now based on customer location rather than merchant location. Merchants must verify customer location with evidence to avoid fines and prosecution. Anyone selling digital goods like games, software, or media into the EU is affected. Taxamo offers a software solution to help merchants comply through features like VAT calculation, validating customer location evidence, and generating required audit and returns files. Their solution identifies EU and non-EU transactions in real-time and integrates into merchants' systems without interrupting existing customer workflows.

2.
The
EU
VAT
Regula.on

3. Previously based on
merchant location
Jan 1st 2015
EU VAT Regulation 2015
EU VAT RULE CHANGE VAT now based on
customer location
EU tax authorities have
agreed
Merchants must verify
the location of
customer with
evidence

4. NON COMPLIANCE – NOT AN OPTION
FINES FROM TAX
AUTHORITIES
JAIL PROSECUTION FROM
28 MEMBER STATES

5. WHO IS AFFECTED?
Anyone selling the following into or in the EU….
v Games and e-books
v Software and software upgrades
v Websites, hosting, VoIP and content
v Music, films, images and photographs
v Basically any digital good

6.
HOW
DO
THEY
COMPLY?

7. BUILD A TECHNICAL SOLUTION
Identify EU /Non EU
transactions
Store Customer location
evidence
Collect 2 pieces of non
conflicting evidence
VAT Rate management
Create Audit SAF-MOSS
files
Create Quarter MOSS
Returns
Issues local Invoices
What’s
involved?
Build
a
VAT
calculator
with
features
like
…..
And
a
repor.ng
suite
with
the
following
features
…
Check VAT Numbers
For B2B transactions
Use ECB FX Rates
for quarterly return
Store all the Data
for 10 years

8.
What
is
Taxamo?

9. • Taxamo is a Software as a Service for the
2015 EU VAT change
• Enables compliance through a technical solution
• Our solution is built around the EU VAT Regulation

10.
OUR
SOLUTION

11. TAXAMO SOLUTION
VAT Calculation
Validation for B2B
transactions
Identifies EU / non
EU transactions
Support Dynamic
or universal
pricing
Collect required
evidence for B2C
transactions
12345
VAT rate matrix
Everything happens
In Real Time

12. CALCULATING VAT
Taxamo collects up to 6 Evidence
IP address Credit card
prefix
Payment &
Billing info
Phone number EU VAT
number
Commercial
info

13. TAXAMO SOLUTION
Calculate
ongoing VAT liability
Store customer
location evidence
& VAT information
Create quarterly
MOSS returns
FX Rates
Create audit files
for tax authorities
Reporting suite
%
Store data held
for 10 years

14. INTEGRATION
INTEGRATION
Client Libraries
-PHP
-Ruby
-Python
-Java
RESTful /
JavaScript API
Full Test
Environment
Full documentation
& support
%
i

15. TAXAMO ECOSYSTEM
…without interrupting existing customer journey