Fornax offers automated VAT calculation and administration
The Fornax company group developed the VAT (Value Added Tax) system, a stand-alone software tool that helps preparing the mandatory VAT returns in a single member state for shipments sold to the European Union from a third country through an intermediary.
As of the 1st of July 2021, the European Union abolished the exemption from VAT for parcels from third countries and with a value of less than €22, consequently, service providers must now calculate and keep a record of the VAT content of parcels of lesser value as well.
This could mean millions of extra parcels per year compared to the average number of parcels of the previous norm, suddenly imposing a huge amount of extra work on importing companies.
At the request of E-Trade Soft Europe, the Fornax company group developed a custom VAT (Value Added Tax) system, a stand-alone software that supports the work of the IOSS (Import One-Stop Shop) brokerage company.
The functionality of the VAT system is wide-ranging, it is able to calculate and record the VAT content of goods and services from third countries, regardless of whether the destination country is Hungary or not, applying the relevant tax provisions of the destination country. It is also capable of reporting the data required for periodic VAT returns, as well as preparing various summaries and tax returns. Moreover, the solution can be used to automate, the legally required tax administration of shipments with a value of less than 150 Euros, which would otherwise have to be processed manually by company staff.
The Fornax team of experts developed the VAT system using Spring Framework, Angular, and Microservice Architecture technologies.