Switching to Taxdoo is as easy as this

Several times a day we are asked how online traders who already use a programme such as Amazon CEE or Pan-EU and are currently handling the necessary Value Added Taxcompliance with another provider can switch to Taxdoo – and preferably as quickly and with as little effort as possible.

Even traders who have only used our data service up to now can easily book the submission of Value Added Taxdeclarations through Taxdoo: for 79 euros per month and per state – without any ifs and buts!

We explain in two steps how it works smoothly.

In many cases, fines, gaps in reporting and other omissions have occurred in the past, which can develop into significant financial risks.

Example: The online retailer Anton Meier, based in DE, has already been using the Pan-EU Amazonprogram for a year. So he uses the FBA warehouses in DE, CZ, PL, FR, IT, ES and UK. Anton Meier made the sales tax registrations in the 6 countries outside of DE via the provider CheapTax and up to now he has also had the sales tax registrations in these 6 countries processed via this provider.

Unfortunately, the service provided by CheapTax was not satisfactory: some notifications were not submitted at all, some were submitted with significant delays, some with incorrect figures. Several foreign tax authorities have already made enquiries to Anton Meier or demanded fines. Since CheapTax is not located in DE and cannot be reached by telephone, support requests are only answered in writing – if at all – after many weeks. Sales tax deadlines cannot be met in any way.

We are confronted with such situations every day. In advance: Taxdoo can take over such a setup completely and also “clean up” the past for many years. We carry out such changes several times a day and know all necessary steps exactly.

Two steps are required for a change

For a seamless switch to Taxdoo, two steps are required so that we can fully handle your VAT returns in every EU country in the future.

1. technical connection

Taxdoo must be enabled to draw and evaluate all data relevant to turnover tax. This is particularly easy via our interfaces, e.g. to Amazon, eBay, JTL, plentymarkets, Afterbuy, billbee and Shopify.

The time required for the connection to Taxdoo Amazon is less than 5 minutes. The connection can be established comfortably directly in the Taxdoo dashboard, as shown in the following screenshot.

2. transfer of the powers of representation for VAT purposes

In order to enable our local tax advisors to submit all VAT registration forms in the individual countries in the future, a transfer of the VAT representative powers of attorney is necessary (i.e. no new VAT registration is required if the VAT-ID already exists in the respective country). Taxdoo will ask you for all necessary information at the beginning of the cooperation and will take over the complete process until the transfer is completed. This process can take up to 3 months (after Taxdoo has received all necessary documents); as we have no influence on the speed of work of the tax offices in other EU countries, this duration can unfortunately not be bindingly stated. However, Taxdoo will do everything to complete the process for you as quickly as possible.

This lead time must be taken into account in the event of a possible termination of the previous provider. The progress of the process is always transparent in the Taxdoo dashboard, as the following screenshot shows. Best of all: The transfer process is completely free of charge for you.

Example (continued): Anton Meier sells via Amazon and eBay. Both sales channels are connected to Taxdoo in a few minutes. For the 6 countries outside DE, Anton Meier has the sales tax representation powers of CheapTax transferred to the local tax consultants of Taxdoo. He plans a lead time of 3 months for this. After Anton Meier has provided Taxdoo with the information required for the transfer, Taxdoo completes the change for Anton Meier. CheapTax will continue to report for the next 3 months; the contract with CheapTax will end after this. From then on Taxdoo will take over all sales tax notifications.

We are often asked about the following topics during a change:

• Immediate (!) change: Some online traders seem to be so dissatisfied with the previous VAT provider that the latter is “with immediate effect” prohibited from submitting VAT returns. Since the transfer process described above can take up to 3 months, this can result in a “reporting gap”. In this case, Taxdoo can, after completion of the transfer of authority, submit all reports for the months not yet reported (even if fines are incurred for this).
  Note: The occurrence of such temporary gaps should of course be avoided at all costs, if possible.
• Retrospective “clean up”: Many changers bring “inherited burdens” to us: Reports were sometimes not submitted by the previous provider, were submitted incompletely, were submitted late or incorrect figures were reported. Taxdoo can clear this up for you retroactively – even over several years.
  In the first step we evaluate the transaction data for the past and create the necessary basis of figures and maximum transparency. In the second step, our local tax advisors can subsequently submit missing reports, correct incorrect reports and find out the reason for any fines from the past.

Example (continued): The tax authorities in PL informed Anton Meier that from the very beginning the so-called SAF-T declarations were not submitted by CheapTax. In addition, false figures have been filed in the UK by CheapTax since the beginning. In ES no reports have been submitted at all. After completion of the change, Taxdoo will first automatically prepare Anton Meier’s transaction data for the last year. On this basis, the SAF-T notifications in Poland are created and subsequently submitted, the correction notifications in the UK are created and submitted and the notifications in ES for the previous year are created and subsequently submitted. The communication with the respective tax authorities is handled by the local tax consultants of Taxdoo. Anton Meier himself communicates exclusively with Taxdoo in Hamburg.

During the entire change process we are available – as for all Taxdoo users – by telephone and in writing. Weeks of response times or permanent unavailability are now a thing of the past. In spite of all the automation, this is an essential prerequisite in the area of taxes for a clean turnover tax processing.

No matter how many countries we take on: Taxdoo in Hamburg is your only contact. We take care of the coordination of the individual countries for you.

If you want to know more about how you can mapValue Added Tax compliance and financial accounting efficiently and securely,

… then use this link to book your individual and free initial consultation with the Value Added Taxexperts from Taxdoo!

Taxdoo obtains transaction data directly and automatically from all relevant market places and ERP systems, reports these abroad and transfers them to financial accounting at the push of a button, e.g. via our DATEV interface.