Navigating the scope of various tax rules can be a complex process for businesses that operate online, but it’s crucial for digital platforms to understand and keep up with their tax obligations.
Toronto’s Trolley, the payouts platform for the internet economy, announced a major expansion of its Tax product this week.
Trolley now allows online marketplaces across the globe to pay out and report on payments to European sellers in full compliance with the EU’s stringent DAC7 reporting obligations.
For online marketplaces with hundreds or thousands of non-employee sellers, complying with global tax regulations can be challenging at scale, difficult to do manually, and may slow down business growth.
With this new multi-jurisdiction solution for the EU’s DAC7 regulations, Trolley is automating the whole process, offering an end-to-end DAC7 Compliance product that works regardless of which of the 27 EU member states is being used for reporting purposes.
Together with Trolley’s current US IRS Compliance product, customers who leverage the DAC7 product will have peace of mind knowing that they are compliant in even more countries — all from one platform, and without needing to make use of a third-party provider.
“We’ve had conversations with accounting, tax and operations teams about how they’re going to solve the challenges of DAC7,” says Barnett Klane, VP Product at Trolley.
“It was a no-brainer for us; we needed to help platforms working with sellers in the EU address the challenges of scaling their complex global payouts and generate compliant end-of-year tax reporting. This new turnkey solution simplifies and automates the entire DAC7 workflow.”
The EU is one of the first groups of countries to adopt tax rules specifically targeted at online marketplaces, but others, like the UK and Canada, will be following suit.
The Trolley team is already anticipating the future needs of even more jurisdictions, and ready to adapt their Tax product to meet those requirements.