eClear becomes a payment institution

BaFin has granted the Berlin-based start-up eClear permission to act as a payment service for cross-border e-commerce trade throughout the EU for its VAT payment solution "ClearVAT", which is unique in Europe.

Berlin, 3 May 2021 - Berlin-based tax technology specialist eClear AG has been granted a licence to provide payment services by the German Federal Financial Supervisory Authority (BaFin). The licence is valid for the whole of Europe in the course of so-called passporting.

eClear specialises in the clearing of VAT from cross-border B2C and D2C transactions in online trade. Thanks to the BaFin licence, the company can now process the Europe-wide payment transactions of online merchants and thus independently pay the VAT. The role of "tax payment acquirer" is a novelty in Europe. The company takes over collecting the money from the end consumers and pays the VAT directly to the responsible tax authorities abroad. In this context, eClear is liable for the correctness of the VAT calculation and the amounts owed to the tax authorities.

The advantage of processing transactions via eClear: e-commerce merchants do not have to register for VAT themselves in the destination countries, nor do they have to file a tax return or comply with the tax rules required. The concept of automated VAT clearance in the context of cross-border B2C transactions is entirely new. "The ZAG (German Payment Services Supervision Act) licence is an important milestone for eClear, which further differentiates us from conventional VAT compliance providers on the market and strengthens our network of trust. For example, eClear is now the first payment institution in Europe to take over the calculation, collection and settlement of transactional taxes in a fully automated manner, i.e. ‘end-to-end’ for merchants," says Anne-Katrin Gewohn, the responsible Chief Risk Officer.

"eClear transforms the way VAT and customs are handled," says Roman Maria Koidl, founder and CEO of the company. "With our innovative automation solutions, merchants overcome the complexity of transactional taxes in Europe and accelerate their cross-border B2C and D2C business. As a payment institution, we can now offer additional services to our customers to smoothly enable their cross-border growth."
https://eclear.com/article/eclear-becomes-a-payment-institution/

eClear AG
Chausseestraße 116
10115 Berlin
comms@eclear.com

eClear AG is Europe's only payment service for tax clearing in cross-border e-commerce. With its full-service solution "ClearVAT", the leading tax technology company takes over the complete processing of VAT obligations from cross-border B2C trade transactions. The cloud-based eClear solutions automate and significantly simplify all VAT, customs and payment processes in e-commerce trade. The company was founded in 2016 by Roman Maria Koidl. The supervisory board of eClear AG includes Peer Steinbrück, Thomas Ebeling and Dr Gerhard Cromme. eClear AG's processes are certified under Auditing Standard 880 of the Institute of German Certified Public Accountants. Further information can be found at https://eclear.com.

This release was published on openPR.