VAT Compliance Module

VAT Compliance Software

VAT Compliance Software

Value Added Tax (“VAT”) is a form of sales tax imposed at each stage of the sale cycle. It is a mandatory consumption tax, used by most countries, differing from the US Sales tax in the method of calculating and reporting. Exactor VAT Compliance Module provides real time calculation of the global value added tax. Exactor maintains rate accuracy, and a merchant does not need to perform any data update maintenance service.

The Exactor VAT Compliance Module can also generate and file VAT returns in most countries, focusing on Europe, Australia and East Asia.

The Exactor VAT Compliance Module is designed for the Global Marketplace. It allows accurate calculation of sales and consumption taxes in all countries independent of the location of a buyer and a seller, adjusting and accounting for local rules. For example, most VAT rules are destination based, relying upon the place of delivery. In some economic zones however, such as the European Union, the rules are complicated by requiring a seller to calculate and collect taxes either by the location of the seller or the place of delivery. The Exactor VAT Compliance Module determines and accurately calculates taxes according to any of the relevant rules.

VAT taxes typically need to be specifically listed in the invoice. The Exactor VAT Compliance Module assures that the accurate taxes are seamlessly inserted into the invoice in real time without stopping or impacting the transaction. In many countries, a seller is obligated to specifically identify in the invoice the sale price and the VAT tax charged. When the quoted sale price already includes the VAT tax, as is typically the case, the Exactor VAT Compliance Module will automatically extract from the quoted total price the accurate VAT taxes, as per the location of the transaction, and automatically insert into the invoice the required break-down between the net sales price and VAT taxes owing.
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