How the Tax Shield works
- To take on the responsibility for sales tax, VAT, and GST, we must act as your authorized reseller.
- There is usually a tax-free transaction between us and your business with this approach. This type of transaction is often called a reverse charge transaction.
- We need to monitor thresholds worldwide, collect taxes, file tax reports, and remit tax worldwide.
- Not only is it our administrative responsibility to handle sales tax, VAT, and GST correctly. We also take on the risk and remove this burden from your business. We act as a shield.
The legal relationship between us
- We act as an authorized reseller for you. Legally, we sell to the customer and buy the licenses from your business.
- To be able to perform our reselling activity, from a legal perspective, we mandate you to implement and host the checkout. Depending on our agreement, you may also take on additional responsibilities.
- Based on our terms and conditions, we will also add you as a GDPR processor.