CardPayDirect

Effective VAT Management
Compliance with EU Council Directive 2002/38/EC in force July 2003
Maintaining Competitiveness

The aim of Directive 2002/38/EC is to harmonize the competitive advantages between EU-based and non EU-based businesses with regards to VAT (Value Added Tax) collection.

The new regulations stipulate the following:

1.	EU business selling to an EU private customer (EU-B - EU-C) EU-B must collect VAT at rates between 15-25%, depending on location of EU-B
2.	EU business selling to another EU business (EU-B - EU-B) EU-B must not collect VAT - EU-B will pay VAT using self-assessment
3.	Non EU business selling to an EU private customer (NonEU-B - EU-C) Non EU Businesses are now required to register a company within an EU jurisdiction and collect VAT at the rates approved in that jurisdiction (see No. 1 above)
4.	Non EU business selling to an EU business (NonEU-B - EU-B) NonEU-B must not collect VAT. However, non EU businesses will need an automated, real time method of determining the validity of the VAT information provided by EU-B
5.	EU business selling to a non EU private customer (EU-B - NonEU-C) EU-B must not collect VAT
6.	EU business selling to a non EU buisiness (EU-B - NonEU-B) EU-B must not collect VAT

Endeavour IBS is offering a complete package that allows non EU-based companies to comply with these new directives, and maintain their competitiveness without the incumbent administration overheads.

The package consists of:

The Endeavour Payment Gateway Solution (EPG) - operated through banks in Malta and in Ireland
Registration in Malta or other EU jurisdictions - in particular, Malta has one of the lowest VAT rates in the EU at 18%
Automatic VAT Number Validation to determine VAT compliance in real time
EPG provides a high end Online Merchant Interface to allow administration of transactions, including VAT information, and export of data into accounts packages