“We come from an Ecommerce background and set up RedSky Europe 3PL in 2019 offering fulfillment services to growing online brands. We saw that a lot of these companies were struggling to manage their European VAT.

As an Ecommerce 3PL, having a strong VAT partner such as Taxmatic was a must, enabling us to sell our fulfilment services as part of a total solution.

VAT is complex in Europe, Taxmatic gives us the comfort that our clients are being taken care of.”

Ger Egan, CEO of RedSky Europe

Overview

RedSky Europe, a leading Irish eCommerce fulfilment partner, has been at the forefront of providing first class 3PL (Third-Party Logistics) services to businesses selling across Europe. With a growing number of eCommerce businesses relying on their expertise for seamless order fulfilment, RedSky recognised the critical importance of offering comprehensive VAT compliance solutions to its clients. This realization led to a strategic partnership with Taxmatic, a trusted VAT advisory firm specializing in eCommerce VAT solutions.

The Challenge

In the competitive world of eCommerce fulfilment, RedSky Europe faced several challenges related to VAT compliance that directly impacted their clients:

1. Complex VAT Requirements: eCommerce businesses expanding into the European market often struggle with the complex VAT regulations that vary from country to country.
2. Pre-Warehouse Compliance: Before any eCommerce business could ship their inventory to RedSky’s warehouse, they needed to obtain an Irish VAT number and EORI (Economic Operators Registration and Identification) number. Navigating these registrations was often a daunting task for businesses.
3. Maximizing VAT Efficiencies: Ensuring that clients were taking full advantage of VAT simplification measures, such as postponed import VAT accounting and the One Stop Shop (OSS) mechanism, required specialized knowledge that many clients lacked.
4. Product VAT Rate Accuracy: With varying VAT rates across different EU countries, it was crucial for RedSky’s clients to charge the correct VAT rate on their products to maintain profitability and compliance.
5. Internal Knowledge: RedSky’s team needed a deeper understanding of VAT principles to confidently assist clients with queries related to commercial invoices, importer of record (IOR) responsibilities, and INCO terms.

The Solution: Partnership with Taxmatic Limited

Recognising these challenges, RedSky Europe partnered with Taxmatic to provide their clients with comprehensive VAT advisory and compliance services. This collaboration has proven to be highly beneficial for both RedSky and their clients.

Key Benefits of the Partnership

1. Enhanced Service Offering:
   • Industry Expertise: By partnering with Taxmatic, RedSky Europe significantly enhanced its service offering to prospective clients. Taxmatic’s deep understanding of eCommerce and VAT regulations bolstered RedSky’s credibility as a holistic service provider.
   • Increased Client Confidence: The association with a trusted VAT partner like Taxmatic has made RedSky more attractive to eCommerce businesses seeking reliable fulfilment services in Europe.

1. Seamless VAT and EORI Registrations:
   • Simplified Compliance: Taxmatic efficiently handles VAT and EORI registrations for RedSky’s clients, ensuring they can quickly and compliantly move their inventory into RedSky’s warehouse.
   • Clear Guidance and Advisory: Clients receive expert advice and clear guidance on VAT and customs obligations, reducing the compliance burden and allowing them to focus on growing their businesses.
2. VAT Efficiencies and Simplification Measures:
   • Cost Savings: Taxmatic ensures that clients leverage all available VAT simplification measures, such as postponed import VAT accounting and OSS. This not only simplifies their VAT obligations but also leads to significant cost savings.
   • Optimized VAT Strategy: Through regular consultations, Taxmatic helps clients optimize their VAT strategies, reducing administrative overhead and enhancing cash flow.
3. Product VAT Rate Reviews:
   • Increased Profit Margins: Taxmatic conducts thorough reviews of product VAT rates to ensure clients are charging the correct rates. In many cases, this has resulted in increased margins for sellers, particularly in product categories like food supplements that benefit from reduced VAT rates across the EU.
4. VAT Training for RedSky’s Team:
   • Empowered Team: Taxmatic provides RedSky’s 3PL team with basic VAT training, empowering them to respond confidently to client queries related to VAT, commercial invoices, IOR, and INCO terms. This knowledge not only improves internal efficiency but also enhances the overall client experience.

Conclusion

The partnership between RedSky Europe and Taxmatic has been instrumental in driving mutual success. By integrating Taxmatics VAT expertise into their service offering, RedSky Europe has been able to provide a more comprehensive, compliant, and cost-effective solution to their eCommerce clients. This collaboration has not only enhanced RedSky’s credibility in the market but also delivered tangible benefits to their clients, ensuring they remain competitive in the fast-paced world of eCommerce.

About RedSky Europe

RedSky Europe is a leading Irish eCommerce fulfilment partner, specializing in providing tailored 3PL services to businesses across Europe. With a focus on delivering exceptional service and innovative solutions, RedSky Europe is committed to helping eCommerce businesses succeed in the European market.

About Taxmatic

Taxmatic is a trusted VAT advisory firm with a strong focus on eCommerce VAT compliance. With a team of experts who understand the complexities of VAT regulations across Europe, Taxmatic offers tailored solutions that simplify VAT obligations and enhance business efficiency for eCommerce companies.