We get lucky! Why? Because, we (Businesses) have the possibility nowadays to use plenty of third party services, allowing us to focus on what we do the best. It has evolved so much, I can't even imagine before how it was. Or You didn't had it, or you developed it yourself, or it wasn't that good, or you probably paid a lot for it.
It looks like we are one of this kind of third party service that can save your business life...
It is well known now for you, but I will make it clear once again, since January 1, 2015 in EU when you sell e-services B2C (videos, software, music, apps..) you have to collect taxes according to the country of the end-consumer and not the country of your business. This regulation also applies if you are a non EU business (for instance American Company) selling e-services in EU, you will have to register their company in one of the EU country and declare VATMOSS (VAT mini one-stop-shop) quarterly. This heavy regulations has to be handled by every business. There is no such a 75,000€ threshold to make it easier for startups or micro business like there is in Australia.
If you sell worldwide, I have a bad news and a good news…
We will start hard with the bad one: In middle term we have all reasons to believe that every country will put the same regulation in place because it is an unfair advantage for national companies, and if EU starts, everyone will follow. There is already South Africa, South Korea, Japan that have this in place with a respective,14%, 10%, 8% tax rate.
And some more are planning to do the same thing, Russia will put this in place very soon in 2017, with a tax rate of 18%. Australia and new Zealand will have this put in place between end of 2016 and beginning of 2017. This was the bad news my friend, you will have to collect your sales to so many different tax rates that it will be hard to do it all by yourself if your not a giant such as Ebay, Amazon or google.
Of course now you know what the good news is! Octobat is going to be able to solve all this issue pretty soon. Our V2 is now in development and it’s going well. The different regulations put in place will be implemented in our system as they are introduced by country. All of this to help you focus on your core business. We have had the experience already and it is so annoying to loose time on things you don’t want to do and you know you won’t do well.
We will be there as you grow your business and sell worldwide, our new system will completely handle the US market, it is a challenge for us because there are 9,000 different tax jurisdictions as in Europe there are only 81.
We get excited as we are soon launching our new product that will offer a whole new user experience and a lot of new possibilities for your business.