Accommodating and applying different Goods and Services Tax (GST) or Value Added Tax (VAT) rates can be a time consuming and tedious task. With the latest version of ADvendio, you can now simply set up, and apply VAT rates on a state by state basis.
Enhanced Functionality for State to State Taxation
In the past, the calculation of VAT was limited to country-by-country functionality, for example, an advertiser based in Germany selling to a customer based in the Netherlands. With the global nature of business today, advertisers and publishers need the capability to operate across both national borders and state boundaries to maximize their advertising revenue.
This limitation to the country by country tax application rule meant that it was only possible to apply one such rule at a time with this being strictly limited to international VAT parameters. Without the flexibility to manage the ever-evolving needs of modern customers, business operations will not thrive. At ADvendio we are extremely passionate about our product, ensuring it is a future-proof solution from the smallest business processes to cutting edge advertising technologies.
A Greater Level of Flexibility to Taxation
Our latest update adds to the standard functionality of the VAT feature which automatically matches the relevant VAT setting during the creation of new cross-media Media Campaigns depending on the relevant Country and/or state configuration. This information is then applied for that customer from the proposal stage through to the generation of invoices. ADvendio has also made it possible for advertisers and publishers to manage an additional VAT Rate % (Type 1 B, and Type 2 B) for particular cases where customers are liable to pay a reduced VAT rate depending on their situation.
Enhancements to the ADvendio VAT support feature now allows for the allocation of VAT on a state basis. For example, let’s take a scenario in which you are working with a buyer in Canada, where there are a couple of scenarios for how tax is charged. Firstly, all goods & services are subject to the standard 5% Goods & Services Tax (GST). However, in certain cases, the 5% GST is charged along with a secondary tax, the Provincial Sales Tax (PST). This combination of costs is otherwise known as Harmonized Sales Tax (HST) which is applicable in five of Canada’s provinces.
In this situation, manually managing the correct allocation of VAT for customers within & outside of the 5 states where HST is applied would be time-consuming and error-prone. In the past, accommodating the 5% GST rate would be simple and straightforward, however, the issue would have been with managing the supplementary PST as a separate value while charging your customer the combination of both values to charge the correct HST value. With our enhanced GST support multiple rates are now supported as standard with our latest update for maximum operational efficiency. This improvement also makes it possible to accommodate an additional VAT rate within one VAT Type to ensure the flexibility to accommodate even the most exceptional requirements of your customers.
Enhanced Financial Accuracy & Efficiency
We understand how difficult it can be to satisfy customers’ tax requirements across a number of countries and regions. ADvendio’s enhanced support for GST allows advertisers & publishers more flexibility to manage a wider range of VAT requirements making onboarding clients in any location as simple as possible. For even greater accuracy & efficiency, all financial data within ADvendio easily integrates with accounting systems, saving you time to spend on the key focus of your business, maximizing advertising revenue.