Doing business globally means taking into consideration a whole new world of taxation: indirect taxation. In the U.S. alone there are over 14,000 separate tax jurisdictions, which means that knowing how to apply and remit sales and use taxes can prove to be a challenge. Even the most sophisticated organization would find a challenge in managing tax remittance and accounting for business expenses.
Then, this does not take into consideration the fact that taxes aren't static; they're ever-changing as worldwide political and economic variations come with new tax requirements. In this guide, we detail what you should be thinking about when it comes to global tax management: use & sales tax and VAT. Plus, we give details about our tools, capable of doing the work for you.
USE & SALES TAX
Analyzing the legitimacy of charges can be time consuming. You need to take into consideration the locality of purchase, purchase price, item description (for exemption management), and purpose of purchase.
The mother of indirect taxes, Value Added Tax, is employed in 85% of the world’s countries, including all OECD countries (with the exception of the U.S.) and raises about a fifth of total tax revenues across the world. Considering how big VAT is, organizations need a solution for ensuring law compliance and collecting appropriate exemptions.
DATABASICS is relied upon by leading organizations representing all the major sectors of the global economy: financial services, healthcare, manufacturing, research, retail, engineering, non-profits/NGOs, technology, federal contractors, and other sectors.