If we were to build a plugin that integrates Taxamo with your Shopify store, whereby you're able to just input your Taxamo details and have it automatically integrate with the Taxamo system would this be of interest to anyone?
We'd probably have to charge $5 / month or something similar to cover our development costs - separate to the costs form Taxamo. Would this be of interest to anyone?
Good luck with that. Taxamo has *extremely* strict requirements and won't use Shopify/Avalara data for tax calculation *or* display. Also, as currently built, it doesn't work at all with discounts (although that's coming). I've been deep deep down this development rabbit hole. Happy to chat if you'd like (PM me) but don't get it in your head that you are just going to pull Shopify/Avalara tax data (which is easy and what CBIT does). It's a non-starter for Taxamo for compliance/liability reasons (their legal interpretation of compliance differs greatly from CBIT's- I'm not going to opine on that but Taxamo is very firm on it).
That’s because Taxamo are a ‘deemed supplier’ like EBay or Etsy rather than an Intermediary. If the VAT collected isn’t right, only Taxamo are liable. Do they have a method of recouping under-collected VAT from their sellers?
Speaking of incorrect VAT amounts, I got a reply from the Swedish Tax agency. They confirmed the VAT must be collected on goods and shipping for IOSS consignments, as expected. Crossborderit are registered through Sweden, so I guess we're getting different advice. Weird huh.
"That’s because Taxamo are a ‘deemed supplier’ like EBay or Etsy rather than an Intermediary. If the VAT collected isn’t right, only Taxamo are liable. Do they have a method of recouping under-collected VAT from their sellers?"
Ohhh that's super interesting and makes a lot of sense. Taxamo only collects and remits VAT based on *their* calculation of the liability but that calculation is based on store entered HTS information in the product config... so, yes, a store could deliberately enter advantageous HTS codes and leave Taxamo liable- but their vendor agreement is pretty substantial so I'm sure that they have the ability to charge the credit card on file or otherwise go after the store for a liability. On the shipping- I haven't run into that but nor do I charge shipping (so there is nothing to tax).
CBIT seems like it has a bunch of internal risk- it's fully dependent on *store* data, not it's own, that means that it's basically remitting "on trust." Ask yourself, "how many SMB Shopify stores would I fully "trust?" Their app helps a lot but bad data in is still bad data. That would keep me up at night. But they are moving fast and are easy to work with, so good job guys, hope that it doesn't blow up on you!