eClear’s certified processes and constant monitoring of applicable EU directives and the member states’ local regulations ensure that VATRules is continuously updated and on-demand delivered to your ERP or shop system.
Boosting Competitive Pricing with Tax Compliance
In a highly competitive industry, it is vital to avoid unnecessary losses with overpaid VAT.
VATRules knows all the VAT rates you have to charge in the EU-27 plus Northern Ireland.
So you are never over or underestimating your VAT spending for your product price calculation. Instead, you always calculate the VAT applicable in the respective destination country.
By applying the correct VAT rates, including reductions and exceptions in the respective countries, you not only comply with the current regulations but can increase your revenue.
What Does VATRules Mean for Merchants?
The ability to calculate the correct VAT for every product means that beyond customer satisfaction and tax compliance, merchants can increase their revenues.
Many merchants apply the same product price when selling to other EU countries to simplify their processes. However, VAT rates on products in the EU vary. In Ireland, for example, many products falling into the categories of children’s clothes, shoes and books are subject to a reduced VAT rate of 0%, while a guitar is subject to the standard Irish VAT rate of 23%. In Portugal, on the other hand, children’s items are mainly taxed at the standard rate of 23%, but books and guitars are mostly taxed at only 6%.*
With VATRules such exceptions are always taken into account so that overpaid VAT is out of question and merchants can translate those losses into revenues.
* Subcategories can be taxed differently; for example, the category “children’s shoes” can be assessed differently with regard to shoe sizes. In our examples, we assume the maximum reduction in this case.
Up to 4 Billion Annually* Overpaid VAT in Europe
Every year, merchants in Europe are overpaying VAT to the local tax authorities, but is doesn’t have to be like that.
Want to find out how you can increase your revenue and strengthen your competitiveness with VATRules?
Download our fact sheet to learn more about the potential savings when applying the correct VAT rates.
*The calculation is based on the e-commerce trade volume forecast for 2021 within the EU27 (Statista, 12.2021) and the application of the VATRules database.
Features
- More than 1.2 million eClear IDs that map the unique combinations of product and country-specific applicable tax rates; with currently more than 300,000 exceptions
- On-demand database, tax rates continuously updated
- Certified data quality
- SPOT: a multi-market dashboard with all your shops, transactions and taxes in one place
- High-performance REST API, certified response under 100 ms
- Plugin available for SAP S/4HANA and SAP Customer Commerce (Hybris)
Benefits
- Tax-compliant application of the relevant VAT rates for the EU-27 and Northern Ireland
- Competitive advantages through country-specific price calculations taking into account currently applicable local VAT regulations
- Process optimisation and time savings through automation in a one-time grouping process (fast go-to-market)
- Increase in customer satisfaction through the correct application of local VAT rates
Jan GrieselFounder, Chairman of the Board, CEO
Tony KastenTeam Leader Projects and Marketing
eClear’s VATRules: A deeper look
Our Team Lead Data Science, Julia Gavriushina introduces the mechanism behind VATRules
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Individual consultation
Do you have questions about our product? eClear’s team of experts will answer them and present you with the integration solution right for your system landscape.
Please send us your enquiry via the contact form. We will get back to you as soon as possible.
Product demo
Learn how VATRules works in a product demonstration. Follow the link to choose a date from our calendar and book your product demo directly.
Online seminar
Learn more about our automation solutions in one of our online seminars. Click the link to access our seminar calendar and select a date that suits you.
Download factsheet
The most relevant information on the VATRules, summarised in a PDF, is available for download.
