It’s Simple with Netsweeper’s Tax Collection and Remittance Solution
Government tax authorities often struggle to regulate e-commerce activities, from online gambling to music streaming, within their boundaries. Collecting and remitting these taxes involves a variety of challenges, including:
Countrywide Challenges
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E-commerce Encryption
E-commerce transactions and communications are always encrypted, but this leaves little or no transparency. Encryption prevents external access to information and all transactions.
Payment Methods and E-commerce Technology
The combination of encryption, e-commerce technology, and hundreds of new payment methods makes it difficult to manage jurisdictional compliance with past and current tax laws.
Volume of E-commerce Websites
It’s estimated that there are approximately 12 million to 24 million e-commerce websites in the world. Governments struggle to keep up with the growing number of merchants on the internet.
Accurate Disbursement of the VAT Use Tax
Understanding how to properly disburse use tax or VAT is problematic due to global deliveries, how goods and services are used, and who buys them.
Governments Wanting Merchants to Remit Their VAT
With millions of merchants in every country and thousands of new eCommerce sites launching every year, it’s impossible for governments to manage taxes outside of their jurisdiction. Putting a minimum on the collection amount would only hurt government revenue since online sales comprise billions of small purchases.
Who Should Collect the VAT?
It is Netsweeper’s position that only governments should collect the VAT within their countries (not Amazon or Netsweeper). We put the government in control of VAT collection.
Secure, Fast E-commerce Tax Collection and Remittance
Our unique VAT/Sales Tax Collections and Enforcement Solution strengthens government tax collection capabilities by removing the responsibility of collection and remittance from the merchant or transporter. Our advanced platform enables seamless enforcement and collection of eCommerce sales tax and transactions worldwide.
By positioning our platform in a country’s gateway, governments can enforce their tax laws securely and cost effectively. Our VAT/Sales Tax Collections and Enforcement Solution collects the tax portion of the transaction and remits it to the correct jurisdiction anywhere in the world.
