Taxware launches www.eudigitalsales.com
Web Site Informs Companies Based Outside the European Union (EU) About Compliance Issues with the EU`s Directive on the Taxation of Digital Sales Taking Effect on July 1, 2003
(Salem, MA) April 22, 2003 - Taxware® (www.taxware.com), a leading developer of worldwide commercial tax compliance systems and an eONE Global operating company, today launched a new Web site, www.eudigitalsales.com, designed to help companies based outside of the European Union (EU) to understand the EU`s complex regulations on the taxation of digital sales - regulations scheduled to undergo significant changes this summer. The site includes step-by-step guidelines and Q&As to help educate companies about the directive and related compliance issues, as well solutions they can deploy to comply with the new regulations. For non-EU companies unsure of the Directive`s effect on their business, the online guide is a resource to help determine if and how the new legislation impacts upon them.
On July 1, 2003, a new European Union Directive on the Taxation of Digital Sales (Directive 2002/38/EC and Regulation No. 792/2002 amending the Sixth VAT Directive, 77/388/EEC) takes effect. This new legislation requires all non-EU companies selling digital goods and services online to final consumers in the EU, to register with an EU taxing authority and levy value added taxes (VAT). Digital goods and services include software, images, news services and online gambling. Businesses must either establish a physical presence in an EU Member Nation, or register under a "special scheme" arrangement. The latter requires companies to charge, collect, remit and report variable rates of value added tax, depending on the customers` country of consumption.
For non-EU businesses selling digital goods to EU consumers - defined as both electronic supplies and electronically supplied goods - the compliance challenge is significant. Each of the 15 EU nations imposes a VAT, but the rates differ widely among member nations. Luxembourg, for example, imposes a 15 percent VAT rate, while Denmark`s VAT is 25 percent. In addition, the planned expansion of the EU to other nations in 2004 will require non-EU businesses to meet further VAT compliance regulations next year.
"The upcoming new VAT rules are putting tremendous compliance pressures on non-EU businesses that sell and deliver online goods to consumers in the European Union - regulations that necessitate the implementation of immediate tax compliance solutions," said Mike Mancinelli, president of Taxware. "By providing a clear, central source for online information regarding these changes and potential in-house and outsourced solutions, Taxware aims to help our customers and other global businesses protect themselves - and ensure they are in full compliance with the new European tax laws taking effect this summer."
About Taxware
Taxware is a leading developer of global commercial tax compliance systems. The company`s products simplify the tax calculation and compliance process with solutions for sales and use taxes, exemption processing, automated returns, e-commerce transactions, taxing jurisdiction assignment, and value-added tax (VAT) for businesses around the globe. Taxware is a division of govONE Solutions, LP, a market leader in government payments. govONE Solutions is an operating company of eONE Global, LP (www.eoneglobal.com), a leader in emerging payment technologies and systems spanning the government, mobile and enterprise marketplaces. eONE Global is majority-owned by First Data Corp. (NYSE: FDC). To learn more about Taxware, please visit www.taxware.com.
About Taxware Products
Taxware, a Certified Service Provider for the U.S. Streamlined Sales Tax Project (SSTP), supplies a range of solutions that simplify the tax calculation and compliance process for companies based around the globe.
• Sales/Use Tax System: Automatically calculates and manages sales, use, and consumer taxes
• WorldTax®: Automatically calculates and reports Value Added Tax (VAT), Goods and Services Tax (GST), sales tax and consumption - covering over 100 countries
• Taxware for e-Commerce: A comprehensive product suite for managing the collection of online sales taxes
• TaxSolver®: An advanced tax return and reporting tool for the remittance of transaction taxes
©2003 govONE Solutions, LP. All rights reserved. The Taxware and govONE Solutions name(s), logos, related trademarks and service marks, are owned by govONE Solutions, LP.
Taxware Press Contact
Mark Dowd
Citigate Cunningham, for Taxware
617-374-4230
mdowd@citigatecunningham.com
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