Overview

AppCharge streamlines global tax compliance for digital goods and services by serving as a Merchant of Record (MoR). In this crucial role, AppCharge is responsible for calculating, collecting, filing, and remitting taxes on behalf of businesses, ensuring compliance with diverse international tax laws. To maintain this compliance and ensure accuracy, AppCharge leverages external tax advisory services that provide updates on the latest tax regulations.

Tax Compliance and Registration

External Tax Advisory Services:

AppCharge collaborates with leading tax advisory firms to stay abreast of the latest tax laws and regulations, ensuring comprehensive global compliance.

Local Tax Registration:

The complex process of tax registration in various jurisdictions is handled by AppCharge, ensuring that businesses comply with local tax requirements.

Streamlined Tax Calculation and Collection:

Custom-developed algorithms are used by AppCharge to determine the applicable tax rate for each transaction based on the user's location. For the US and Canada, ZIP/Postal codes are , users can manually update their ZIP/Postal code. The checkout process remembers the last updated zip/Postal code, enhancing user experience. Taxes are displayed during checkout, promoting transparency and adherence to local regulations. AppCharge collects the appropriate tax amount from each transaction in the local currency.

Post-Transaction Confirmation:

After each purchase, AppCharge sends a purchase confirmation to the email provided during checkout. This confirmation details key transaction information, such as the amount paid and the taxes applied. This immediate and clear record enhances transparency and builds customer trust.

Regional Compliance and Reporting

European Union (EU):

AppCharge is registered for VAT as required under the EU VAT regulations.

United States:

In the complex landscape of US sales tax, AppCharge manages sales tax variations by state and locality, monitors economic nexus thresholds, ensures compliance with state-specific filing requirements, and supports SST member states for simplified tax collection and remittance.

Canada:

Management of GST, PST, and HST is undertaken by AppCharge in Canada, including the filing of separate tax returns at federal and provincial levels as needed.

Other Regions (LATAM, APAC, CIS):

Unique tax challenges in these regions are addressed by AppCharge, handling additional taxes, local registration requirements, and strict invoicing rules.

Comprehensive Reporting and Monitoring:

Businesses receive detailed reports showing global sales performance and the amount of tax collected. Customizable analytics and real-time dashboards help businesses monitor their tax obligations and performance across different regions. AppCharge continuously monitors global tax law changes to ensure ongoing compliance and generates and delivers tax invoices in specific formats required by local laws.

Pricing Management and Core Functionality

Price Points Impact:

AppCharge allows businesses to define and upload pricing points manually or in bulk using a CSV file, ensuring accurate tax calculation based on localized pricing. The system supports over 80 currencies, allowing businesses to update price points in response to significant tax or currency changes, typically recommended on a quarterly basis to maintain stable pricing.

Core Tax Calculation and Compliance Tools:

At the core of AppCharge’s tax compliance features are powerful tax calculation tools that utilize updated data from external tax advisory sources, ensuring that all tax calculations are accurate and compliant with current regulations. These tools are integral in ensuring compliance without explicitly naming the companies involved.