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Epicor Tax Connect tackles miscellaneous taxation challenges such as situs, nexus, tax tiers, tax holidays, trade-ins, write-offs, short pays, and product taxability issues. Epicor Tax Connect offers access to a unique tax determination service powered by Avalara—the only one with a guarantee of the correctness of tax rates. This is essential when there are more than 11,000 taxation rules in North America alone. Avalara has been a trusted ISV alliance partner of Epicor since 2006

At a Glance

  • Developer: Avalara ISV Alliance partner of Epicor
  • Helps your business expand globally
  • Low total cost of ownership—this solution works with your existing ERP and accounting software
  • Leverages a database that includes rules and exceptions for rapid and accurate calculation
  • Minimal disruption as all updates are managed seamlessly in the cloud
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Epicor Tax Connect Helps Your Business Worldwide

Empower your business to confidently tackle taxes anywhere around the globe. Traditional methods simply cannot keep pace—manually calculating and filing value-added tax (VAT) and sales tax is too difficult, risky, and error-prone in today’s ever-changing compliance environment. Epicor Tax Connect allows customers to calculate taxes for more than 200 countries beyond the United States and Canada.

Value-added tax is the primary consumption tax charged in non-U.S. countries. Added at every stage of a transaction and requiring multiple levels of refunds, VAT can be difficult to understand for anyone who is used to paying sales tax only at the end-user level, and it can make companies hesitant to sell internationally

  • VAT typically has a single-user rate in each country that charges it
  • Sellers must determine the number of VAT payments required in the transaction, the country receiving VAT, and whether the buyer or seller pays VAT.

Epicor Tax Connect works with your existing ERP and accounting software to make VAT treatment determinations quickly and accurately. This solution, based on world-leading Avalara technology, knows the rate and how to correctly charge VAT for all theoretical transactions in more than 200 covered countries.

Applies to:

  • U.S. companies selling goods to EU companies or consumers
  • Intra-EU transactions 
  • EU companies selling to U.S. companies or consumers
  • EU companies with wholly owned subsidiaries in the U.S

Drop Shipments

  • Drop shipments from the U.S. to EU can only occur in countries where VAT is registered.
  • Goods must physically clear customs in this country.
  • We cannot ship directly from the U.S. to an EU country we are not VAT registered in, unless the customer clears the goods through customs. This would be a U.S. export, not a sale by one of our international companies.
  • Avalara currently supports drop shipments within the U.S. and when the transaction is treated as a normal export transaction.

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B2C and B2B Transactions

  • Domestic sales—Sales within the EU country in which VAT is registered 
  • “Bill To” and “Sold To” are considered
  • VAT can be processed on tax-ID for customer and country on fewer than two address types per transaction
  • Intracommunity sales—Sales within the EU outside of the country in which VAT is registered
  • Export—Sales outside of the EU
  • Other Taxable sales—Sales within the EU and customers not registered in the EU.

B2C vs. B2B transactions

  • Determined by the population of the buyer’s VAT number (document and line)

Business Impact

Epicor Tax Connect supports VAT intra-USA and Canada calculations and expands the scope to EU countries and non-EU countries with additional licenses. Considerations in calculating VAT include:

  • Addresses provided on the sale to determine location
  • Tax in those locations is based on specified tax locations and where nexus may apply
  • Tax codes assigned/sent to your items will determine taxability
  • Customer-specific settings based on the exemptions applied to the transaction or set up for the customer record
  • Buyer VAT number and place of supply, importer of record, and permanent establishment
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When to Register for VAT

The requirements to register for a VAT number should be the same in each country. Typical instances where a foreign trader is required to register for a local VAT number include:

  • If a foreign company is buying and selling goods in another country
  • If a company is importing goods into an EU country which can include moving goods across national borders within the EU
  • Holding goods in warehouses or on consignment stock in other EU countries for customers
  • Holding a live conference, exhibition, or training if there is a paid entrance
  • Selling goods to consumers over the Internet or through catalogs (distance selling)
  • Supply and installation of equipment in a limited number of situations
  • A very limited number of situations where services are being provided, following the 2010 VAT Package reforms

The requirements above apply equally to companies from within EU and non-EU companies. Generally, non-resident companies must register for VAT immediately.

Potential Areas of Growth

The solution does not currently support the following articles of the EU VAT directive:

  • Domestic reverse charges for a non-established taxable person/business selling domestically (Article 194)
  • EU triangulation simplification (Article 197)
  • Local reverse charges on high-value/ fraudulent goods (Article 199)
  • The system works for non-EU countries with VAT skips EU reverse charge rules and covers goods digital services and general services
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Licensing

  • No additional licenses are needed, if you already have Epicor Tax Connect
  • Epicor Tax Connect international capabilities are automatically activated
  • Tax determination and transaction counts are always based on the origin and the destination of transaction

Additional Information

  • Resident companies’ VAT registration thresholds
  • Additional exceptions for e-commerce companies with a special distance selling VAT threshold

Note: This solution provides what is purely a tax calculation function
for commercial invoices and is not a replacement for Country-Specific
Functionality (CSF) packs sold separately.

Solution supports rates in all countries with a VAT/GST system
currently recognized by the United Nations but not complex VAT or
country-specific VAT scenarios.

Kontakt
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