Digital River provides tax management services that removes both the burden of tax compliance and the financial costs of tax risk. As a Seller of Record of your products, Digital River is legally responsible for calculating, collecting, reporting and remitting tax on sales. In addition to removing day-to-day tax administration responsibilities, our services eliminate the transaction tax risk inherent with end consumer sales.
When Digital River acts as Seller of Record, it incurs all audit risk, and assumes responsibility for the correct tax on all online transactions. This in turn reduces the financial costs of tax risk to your company. Calculating tax is a complex process especially when considering global transactions and shopping cart variability. It is important to be able to calculate taxes on these types of transactions quickly and accurately in order to keep customer satisfaction high. Digital River has the tax structure and capability to do this while also working to minimize tax rates for our clients, thus lower costs for the end-consumer.
While Digital River’s solutions reduce administrative costs and tax risk, certain sales are treated as local expanding currency and fulfillment options due to Digital River’s global reach. Large and small companies alike are able to almost instantly expand abroad into new markets with access to our diverse collection processes. Another benefit is the opportunity for your customers to avoid assuming Importer of Record responsibilities and the related costs. Our light tax footprint ensures that the customer’s indirect tax costs are minimized.
Digital River’s tax solution manages the tax attributes of sales transactions. Our company provides sequential VAT invoices, verifies VAT registration numbers, and prepares accurate tax calculations through our comprehensive address validation tool and robust tax engine. Additionally, tax display options such as VAT-inclusive pricing or “pretty pricing” is tailored to specific geographies.
Digital River maintains a world-class tax calculator that handles any indirect taxation from any country in the world based on your supply chain. The calculator has capabilities to determine correct tax amounts based on income, address, and product code all under 1/10th of a second, resulting in a shopping experience that remains positive for the end-consumer. These service offerings enhance the client experience by removing the burden of managing your tax attributes, and accommodating individual business needs. Tax services provided by Digital River decrease your compliance costs and drive revenue from repeat customers, resulting in a more satisfying consumer experience.
When Digital River assumes the responsibility of Seller of Record, your daily tax administration responsibilities are managed and financial costs of tax risk to your business are reduced. By partnering with our company, the audit risk on end-consumer transactions related to uncollected or under-collected tax shifts from you to Digital River. Whether selling locally, globally (or both), Digital River provides top of the line tax management services that free your company from the burden of tax compliance and risk.
Running an online business operation is truly a complex undertaking and there are many challenges in supporting global commerce channels for a satisfactory total cost of ownership. In addition to the normal challenges of online commerce, you are managing the unique complexities of selling your products in countries around the world which is why we want to keep you in front of and compliant in hugely impactful tax developments.