VAT collection and settlement

Each state has its own set of rules and regulations that may differ from other states. Maintaining tax and regulatory compliance around the globe can cause companies to struggle. Indeed, the increasing complexity and multiplication of sales taxes on products purchased online make the development of its international activity more and more complicated. As your dedicated provider of commerce services, it is Nexway’s responsibility to stay up to date on worldwide financial and legal requirements to make sure you benefit from a seamless and fully compliant international buying and selling experience.

Nexway, with its global expertise, manages sales taxes and VAT on your behalf, expertise reinforced by a network of expert consultancy partners who help us to be compliant in more than 140 countries and thus advise and support you as best as possible according to the countries where you want to scale.

For instance, we track European VAT rates, for countries within or outside of the European Union; manage your U.S. sales tax (multi-state tax laws); help you comply with regulations in APAC, LATAM or EMEA; and automatically calculate and remit your sales taxes.

We determine the shopper’s country by using two matching elements of the billing details provided by the shopper. The elements can include the shopper’s IP address, the country of the bank that issued the credit/debit card, the billing address or the mobile country code used to identify the shopper’s phone number.

On top of these features, we will stay up to date on worldwide sales tax changes.

Note: VAT exemption
VAT-registered business customers based in the European Union can pay for their orders while being charged according to the VAT-ID they provide.

Note: Tax Nexus USA
The US states are now allowed to impose and collect sales and use tax from retailers that have no physical presence within their state – such as online sellers, including sellers of digital goods and in some states also subscription – for sales these out-of-state retailers make to residents of their state.

Any retailer selling online have to think about where they sell and start collecting and remitting taxes to each state individually. This means there is an extra operational effort and costs across many companies due to the state by state complexities that Nexway can handle on your behalf.