Navigating global taxes for digital goods is complex, with regulations and compliance standards varying widely by region. As your Merchant of Record (MoR), Appcharge streamlines this process by handling tax compliance tasks end-to-end. From tax calculation and collection through to filing and remittance, our platform ensures adherence to relevant tax laws, letting you concentrate on delivering quality experiences to your players.

This guide outlines Appcharge’s approach to tax compliance and demonstrates how using our MoR service enables seamless, accurate global tax management.

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The Role of Appcharge as a Merchant of Record

Global tax compliance involves more than just payment processing. As your MoR, Appcharge:

  • Calculates and collects taxes according to each buyer’s location.
  • Files all required tax returns and manages remittances in relevant jurisdictions.
  • Addresses tax audits, reducing compliance-related risks.
  • Monitors international tax regulations to maintain ongoing compliance.
  • Provides detailed, transparent tax reporting.

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How Taxes Are Calculated and Paid

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1. Purchase Determination

Each transaction begins by identifying the buyer’s location. Appcharge uses IP-based geolocation, ZIP/Postal codes, and other metadata to determine the appropriate tax jurisdiction.

  • During checkout, taxes are automatically calculated and displayed to the buyer, ensuring transparency and accuracy.
  • Buyers can update their ZIP/Postal code, and the system will store this information for future transactions.

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2. Tax Calculation and Collection

Appcharge applies the correct tax rates based on the user’s location and local tax rules:

  • Supports a wide range of tax categories, including VAT, GST, PST, and sales tax.
  • Presents the tax amount during checkout to maintain clarity.
  • Collects taxes in local currencies to simplify the buying process.

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3. Tax Filing and Remittance

As MoR, Appcharge manages the complex filing and remittance processes:

  • EU VAT Compliance: Ensures proper VAT registration and adherence to regional directives.
  • U.S. Sales Tax Management: Monitors economic nexus thresholds and meets state-specific obligations.
  • Canadian GST, PST, and HST: Handles both federal and provincial filings.
  • Regional Specializations: Provides solutions tailored to LATAM, APAC, and CIS markets, including unique registration and invoicing requirements.

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4. Post-Transaction Transparency

Buyers receive a confirmation email after purchase, containing:

  • Total transaction amount.
  • Applied tax rate and tax amount.
  • A clear transaction breakdown.

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What Sets Appcharge Apart

In addition to core compliance functions, Appcharge offers:

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Expert Support and Global Compliance

Our compliance specialists and partner advisory firms track evolving tax laws worldwide and provide tailored guidance to maintain adherence across multiple regions.

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Audit Management

Appcharge manages tax audits on your behalf, reducing the administrative burden and minimizing risks associated with external compliance reviews.

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Custom Reporting and Analytics

Real-time analytics and customizable dashboards enable a granular view of global sales, taxes collected, and regional performance indicators. These tools facilitate data-driven strategy and precise financial planning.

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Localized Invoicing Solutions

For regions with distinct invoicing requirements, Appcharge generates compliant, region-specific invoices and delivers them directly to buyers.

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Example of a Player’s Checkout Interface

During the checkout process, buyers see:

  • Accurate, upfront tax calculations.
  • Links to Appcharge’s Privacy Policy, Refund Policy, and Terms & Conditions.
  • A secure interface designed for compliance without sacrificing simplicity.

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Advanced Price Points Management Tools

Appcharge provides comprehensive price point management tools, enabling publishers to:

  • Define, upload, and adjust localized price points in over 80 currencies, factoring in local taxes and market conditions.
  • Present prices in buyers’ local currencies, creating a more familiar and trustworthy experience.
  • Maintain consistent net earnings per sale, streamlining financial reporting by eliminating variable currency exchange impacts.
  • Adjust prices to match local buying power, supporting region-specific promotions and flexible pricing strategies.