Clearing on the basis of a commission transaction

Das PlugIn von ClearVat lässt sich in einer Vielzahl von Onlineshop-Systemen einbinden.

Under the heading "How online trade overcomes bureaucratic hurdles" ClearVAT founder and CEO Roman Maria Koidl describes the pitfalls of the VAT system in the EU and explains the solutions ClearVAT offers for legally secure cross-border online trade. Part 4 of 5

In order to be able to offer such a clearing service, ClearVAT uses a commission transaction as a basis under commercial law (§§ 383 ff HGB). In this case, the commercial law transaction involving a sales commission is reinterpreted for VAT purposes in all EU countries as a delivery from the principal to the commission agent (Art. 14 para. 2 lit. c common system of value added tax, in Germany § 3 para. 3 UStG).

Conversion of a B2C into a B2B business

In fact, the e-commerce retailer's previous B2C business will be transformed into a B2B business. All registration, reporting and payment obligations in connection with value-added tax in other EU countries are transferred to the commission agent accordingly. Thus, the commission agent only has to deal with the regulations of his country of residence.

Such a commission business as a comprehensive clearing service goes far beyond most of the offers of competitors, who only ensure the registration for retailers abroad and submit the periodically owed VAT return.

No liability risks

ClearVAT's clearing solution - based on a commission series transaction - offers an additional benefit for the associated retailers. They can deliver immediately in all EU countries if they cooperate with an EU-wide clearing company. They do not have to register for VAT abroad and therefore do not have to face waiting times. Expensive VAT registrations abroad are eliminated, as are the costs for zero registrations in the case of VAT-free periods. Furthermore, there are no costs for partner networks and tax consultant mandates in the respective EU countries. The retailer can avoid local bank accounts, which are required in many EU countries in order to pay VAT in a legally secure manner. Additionally, the costs for legal reporting and statistical reports are minimized.

Another decisive advantage for retailers is the transfer of liability risks to the commission agent. The commission agent assumes the audit risk and liability for the correct payment of VAT in other EU countries. There is no risk of subsequent payment, foreign tax audits or legal prosecution of the management of retailers - the commission agent acting as clearing house also bears these risks. Cross-border deliveries are usually settled clearly on a monthly basis.

Compatible with online shop systems, ERP and SAP

For the smooth integration of the clearing partner, it is important that the underlying VAT software of ClearVAT is compatible with the common online shop systems. There are also direct interfaces to financial accounting and ERP systems. The ClearVAT software is based on common SAP modules. A certification by the auditing company BDO guarantees a high security standard.

The five parts:

  1. It's complicated - Countless VAT regulations hinder cross-border online trade
  2. 7,000 exemptions in the EU - Each country makes its own regulations
  3. New regulations with uncertainties - Uncertainties in the introduction of a simplified EU VAT procedure
  4. Clearing on the basis of a commission transaction
  5. The VAT Engine - ClearVAT enables e-commerce retailers to calculate and display gross end prices for exact articles, to collect the total amount due from the consumer and to pay the VAT in the country of destination



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