Taxware, the provider of tax calculation and compliance solutions owned by First Data Corporation, has developed a transaction tax application that accommodates the Value Added Tax (VAT) rules and regulations of Bulgaria, Romania and Turkey, the next three countries seeking accession to the European Union (EU).
“Taxware solutions have supported European transaction taxes for almost a decade, for countries inside and outside the European Union,” says Jon Abolins, senior vice president of operations for Taxware. “By implementing changes such as these in advance of their effective dates, Taxware gives its clients confidence that their transaction tax systems will remain compliant with local and international tax calculation, reporting and auditing requirements.”
Taxware solutions accommodate the compliance activities required by businesses engaged in commerce in the EU, including special European Union rules for digital transactions. The recent accession of ten states into the EU was seamlessly accommodated in Taxware systems, implementing law and rate changes several days prior to the May 1, 2004 accession date.
Turkey, Bulgaria and Romania charge VAT at the rates of 18 percent, 20 percent and 19 percent respectively. However, each country’s treatment of particular categories of goods and services differs widely. Should their negotiations to join the EU succeed, these three countries will need to ensure that their VAT systems comply with EU requirements, which may result in considerable changes to rates, regulations and reporting practices.
“Transaction tax nuances plague corporate tax departments and expose companies to unnecessary risk,” says Abolins. “Tax rates may seem relatively easy to monitor, but tracking specially taxed goods and services and cross-border transactions requires more resources than most corporate tax and treasury departments have available. Taxware clients benefit from our independent tax research services, which are embedded in our tax compliance software that supports over 170 countries worldwide.”
In June, Taxware launched Taxware Enterprise, aimed at mid-to-large-sized enterprises. Taxware Enterprise determines (VAT) and other consumption taxes in more than 170 countries worldwide, many of which change frequently. By possessing robust and up-to-date tax research, Taxware’s in-house tax attorneys and analysts update Taxware Enterprise’s pre-configured tax rules as changes in these jurisdictions demand. Taxware Enterprise can be deployed locally or centrally to manage the tax compliance of multiple related or unrelated companies. Specific compliance activities can be centralised or decentralised to enable any organisation’s control or cost-saving objectives.