The WooCommerce Taxamo extension is designed to help online stores stay compliant with EU VAT regulations, specifically for digital goods. By integrating with Taxamo, it enables automatic calculation, collection, and payment of VAT based on the customer’s location, ensuring compliance with VATMOSS (Mini-One-Stop-Shop) rules.
Key Features:
- Automatic VAT Calculation: Automatically calculates the correct EU VAT rates based on the customer’s location during checkout.
- Real-Time Data Capture: Captures up to six different records of location data per transaction without interrupting the customer experience.
- End-to-End Tax Management: Handles the collection and routing of VAT payments to the appropriate VATMOSS authorities.
- Integration with Taxamo API: Utilizes Taxamo’s API for tax calculation, evidence collection, and transaction logging.
- Comprehensive Reporting: Generates downloadable EU MOSS returns and audit files for reporting and compliance purposes.
How Does WooCommerce Taxamo Work?
Once connected to your WooCommerce store, the Taxamo extension sends cart information to Taxamo during the checkout process. Based on the customer’s location and cart contents, Taxamo returns the appropriate VAT to be charged. After payment, Taxamo manages the transfer of the collected VAT to the proper VATMOSS locations within the EU.
What is VATMOSS?
VATMOSS, introduced on January 1, 2015, is a regulation that requires VAT on digital goods to be charged based on the customer’s location, rather than the seller’s. Different EU countries have varying VAT rates for digital goods, and Taxamo helps ensure compliance by accurately calculating and routing payments to the right governmental departments.
Requirements:
- Taxamo API v2: The latest version of WooCommerce Taxamo supports API v2. Before upgrading or purchasing, ensure your Taxamo account supports API v2. Reach out to Taxamo for verification if needed.
Benefits:
- EU VAT Compliance: Stay compliant with complex EU tax regulations without manual calculations or tracking.
- Seamless Customer Experience: Taxamo works in the background without disrupting the checkout process.
- Automated Reporting: Simplifies tax reporting by generating the necessary files for EU MOSS returns.
By using WooCommerce Taxamo, online store owners can simplify the complexity of EU VAT compliance for digital goods, providing accurate tax calculations and ensuring hassle-free payments to VATMOSS authorities.