Sage has launched a new feature that supports customers trading cross border following the introduction of the new EU VAT E-commerce Package.
Sage Accounting, the software company’s flagship cloud accounting solution for small businesses, now features live tax rates and simple reporting tools – helping to significantly cut the administration burden, and reduce human error while keeping businesses compliant.
On 1 July, the European Union (EU) changed the way in which VAT is reported and paid, potentially impacting VAT Registered businesses in the UK selling products & services online to consumers and practicing distance selling into the EU.
The recent legislation, designed to make things easier and simpler for online businesses selling to consumers living within the EU, means that businesses now must assess, based on the region with which they are trading, their entire supply chain and ensure that their VAT liability and reporting obligations are in line with the EU One Stop Shop (OSS).
Sage Accounting customers based in the UK, Ireland, France, and Spain can now automatically identify and calculate the correct rate of VAT, depending on where customers are based, whether that’s inside or outside the EU.
Benefiting from Sage’s intuitive automation, customers can take advantage of a guided experience for each regional Tax Scheme or model. The software will automatically surface the correct VAT rate specific to the country the customer is trading with, presenting only tax codes that are relevant for that contact, as opposed to 50+ that could apply to just one invoice. This reduces a lot of the painful administration for businesses and the time spent by accountants correcting errors, while also supporting businesses to be remain compliant.
Product features include:
- A managed experience for each regional Tax Scheme or model, right down to specific trading scenarios, helping customers to easily understand how their transaction will be processed and why. Specifically for the UK, this includes support for the Low Value Consignment scheme and OSS Services.
- Live tax rates - updated in real time and in combination with Sage Accounting’s scenario management solution developed for Brexit, helping to avoid manual data input errors.
- Destination VAT – charging the VAT rate of the end customer they are selling to, helping customers fast-track goods into the EU or cross border (within the EU), avoiding delays in customs, and providing clarity to their customer on what they will be charged at point of purchase.
- New reports and ledger accounts help customers report on Destination VAT and complete their submissions, simplifying the compliance journey and providing easy reconciliation.
“As we move into our 6th post Brexit month of 2021, the path forward for businesses trading cross border with EU based suppliers and end customers is becoming clearer. Our single focus is to help our customers navigate these changes with solutions and advice that enable them to do better business. E-Commerce gives businesses the ability to reach more customers than traditional retail, and with so many people making their purchases online, it is the fastest-growing retail market – we want our customers to see the opportunities, not the limitations.” Neal Watkins, EVP, Small Segment, Sage.
The automation available in Sage Accounting helps customer to streamline processes without losing accuracy or quality. Giving customers access to the accurate data they need to run their business.