TaxBit, the provider of compliance solutions for digital assets, announced the launch of its CESOP Compliance Platform, catering to crypto exchanges operating in the EU.
This solution addresses the upcoming CESOP compliance requirements set “to commence in Q1 2024, underscoring TaxBit‘s dedication to upholding tax compliance for digital asset enterprises within the continually evolving regulatory environment.”
The Central Electronic System of Payment information, known as “CESOP,” mandates quarterly reporting “to European Union member states for cross-border payments, with the first reporting due by April 30, 2024.”
This regulation, in addition to other tax-driven obligations, aims “to combat Value Added Tax (VAT) fraud related to cross-border payments within the EU.”
Erin Fennimore, TaxBit’s Vice President of Tax Solutions said:
“TaxBit’s CESOP Compliance Platform is a significant stride towards delivering cutting-edge and compliant tax solutions for digital asset enterprises. This robust solution enables businesses to navigate compliance complexities with precision, aligning seamlessly with CESOP guidance and local jurisdiction intricacies, reinforcing TaxBit’s commitment to enterprise-grade tax reporting.”
As noted in the update. TaxBit’s CESOP Compliance Platform “helps enterprises automate complex quarterly reporting obligations across the EU landscape.”
Enterprises can utilize TaxBit’s CESOP Compliance Platform “to efficiently identify in-scope and out-of-scope transactions, store and monitor key customer data points, validate VATs, and ultimately generate quarterly multi-jurisdictional XML deliverables, ensuring seamless compliance with CESOP regulations.”
TaxBit’s API-driven platform provides “a single system of record, delivering a comprehensive solution for global tax compliance. By facilitating scalable and precise compliance, it eliminates manual efforts and inconsistencies in data.”
Notably, TaxBit includes robust support for Global Information Reporting, covering regulations like DAC7, and provides detailed calculations for local UK and EU gain/loss scenarios.
As mentioned in theannouncement, TaxBit, designed “by CPAs and tax attorneys, is the leading tax and accounting compliance solution. Providing tax and accounting solutions for enterprises, financial institutions, and government bodies at scale, the TaxBit platform is modernizing the otherwise complex and manual — from automating tax document issuance to crypto accounting. TaxBit is SOC 1 Type 1, SOC 2 Type 2 attestation and ISO 27001 certified.”
TaxBit has secured “over $235 million from leading global investors, including Tiger Global, Haun Ventures, PayPal Ventures. TaxBit has headquarters in Draper, Utah, with offices in Salt Lake City, San Francisco, Seattle, New York and Washington D.C.”