Is it possible to run a shop or marketplace for physical goods, digital products and electronic services, for business customers and private consumers and with multiple vendors worldwide on a single platform / site / system?
Today many companies run redundant platforms by country and regions or for business customers and private consumers. The reason for this is that the requirements vary widely and the software systems in use are not sufficiently dynamic to cover them. The disadvantages are obvious and result in redundant operating and maintenance costs.
There are some platforms that argue that they are suitable for global markets. But on closer inspection, one recognizes that usually the tax settlement is not or only insufficiently resolved.
Indirect Tax calculation depends on location and tax status of customers, vendors and marketplace. And on products…
In many regions of the world, a different tax calculation is required, depending on whether the online customer is a business customer or a private consumer or whether the business customer is registered for tax purposes or not. The tax status of the sellers and the marketplace itself is more than relevant, too and whether or not the parties are within the same country, state or region.
Also which products or services are sold have an influence on which tax processes and thus whether or which taxes have to be applied.
Display of prices inclusive or exclusive of tax on frontpage, shop and product pages varies by customer location…
Depending on the location and customer type it is not compliant to display prices inclusive of taxes just at checkout. While in these affected regions taxes need to be calculated and displayed correctly inclusive of taxes on each page of your shop, in other customer destinations it may be a valid approach to fetch the correct taxes through an external API just at checkout.
Conclusion:
Tax calculation today is a highly dynamic process. Only a system that can dynamically respond to these multitude of possible combinations and dynamically calculate prices, taking into account the taxes that may apply, is suitable as a global shop or marketplace platform for B2B and B2C customers for physical and virtual products.
Solution:
GT4M is currently the only known, configurable online marketplace enhancement worldwide capable of providing a global, tax compliant marketplace for B2B and B2C processes, physical and virtual products with multi vendors in one system.
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