Netsweeper eCommerce VAT Enforcement and Collection

VAT Collection and Enforcement - The Virtual Risk

Netsweeper can help you enforce the internet laws in your country. Put a jurisdictional ring around your country’s virtual networks, policy manage, and apply a patented tax enforcement and collection strategy for virtual sales and eCommerce. Governments need to pause from “Casting a Wider Tax Net” and fix the leakage of eCommerce tax collection. Tax is the foundation of a nation, and the “Virtual Risk” is happening now. Contact the Netsweeper team today for a consultation.

The Challenge

The Root of eCommerce Tax Enforcement and Collection is “Self-Assessment”
It is impossible to follow the past tax enforcement guidelines based on “Self-Assessment” in the eCommerce world. Asking companies and people to self-assess their eCommerce liabilities is very challenging.

There is No Enforcement of eCommerce Tax Collection
Governments are struggling with eCommerce enforcement. The internet has caused a lawless situation that is now becoming a Virtual Risk to the revenues much needed by governments.

Virtuality of eCommerce
Today, your domains could be registered anywhere in the world, anonymously. Your servers could be located anywhere in the world or virtually, and products can be manufactured anywhere in the world and someone can purchase it from anywhere in the world. Where do we start to understand who is accountable?



The Challenge

Encryption of eCommerce

Today, all eCommerce transactions and communications are encrypted. Rightly so they are handling our money however with encryption comes little or no transparency. Encryption prevents external access to information and all transactions.

Payment Methods and eCommerce Technology

The technology today is mind boggling. Combine encryption and eCommerce technology along with hundreds of new payment methods now and on the horizon how do we manage jurisdictional compliance to our past and current tax requirements and laws.

Volume of Online eCommerce websites

There is an estimated 10.55 million eCommerce websites which is expected to double in 3 years. By 2020, total eCommerce revenues are estimated to exceed 4 trillion around the world. Governments cannot keep up with the number of merchants on the internet today or tomorrow.

Governments Want to have the Merchants Remit their VAT

With millions of merchants in every country in the world, and thousands of new online sales websites being added each year, it not possible for governments to manage outside of the jurisdiction of the country. Sheer volumes, jurisdiction, and the WWW cause this to be prohibitive. Why would governments put a minimum on the collection amount? Online sales are made up of billions of small purchases. Putting lower requirements on purchases that should remit VAT will hurt the government.

How do we Disburse the VAT Use Tax? Who Buys and Who Uses the Goods/Services

With eCommerce downloads, goods, deliveries from anywhere around the world and different uses for the goods and services it is a challenge to understand the proper disbursement of use tax or VAT.

Who Should Collect the VAT

It is Netsweeper’s position that only governments in their own countries should collect the VAT. Not Amazon, and not Netsweeper. Netsweeper’s offer is to put the government in control of VAT collection.



Enforcement + Define Measure Analysis Improve Control + Collection = The Netsweeper VAT Enforcement and Collection Solution.

Netsweeper has been enforcing the rules and laws on the internet in countries for over 20 years. Our extensive reporting tools, reach, and knowledge of the internet is unique. We now have our Tax Collection Solution rounding out a comprehensive eCommerce VAT Enforcement and Collections Solution for your country.




Leakage – “Stop Casting a Wider Tax Net and stop the Leakage”

Many governments are concerned about this Virtual Risk and collection of eCommerce VAT. One government feels their eCommerce is generating $10 billion (US equivalent) with a 10% VAT. They should be collecting 1 billion, however, they have submissions of only $100 million. This represents a $900,000,000.00 leakage. Other countries leakages are in the billions of $.

A Vacation

If you book a vacation in one country and take this vacation in another where should the use tax be applied? Netsweeper follows the laws however we feel 20% should be the booking country VAT revenues and 80% should be the country that the vacation has been taken in.

A Cruise

If you book a cruise in one country and take a cruise in 5 other countries the VAT should be applied according to the laws. Netsweeper feels a portion of the VAT should be split up to the countries on where the cruise is taken.

Customs and eCommerce is Transitioning the way we Account for everything.

Customs departments are challenged. They used to bring in goods by container. Now they get thousands/millions per day, one transaction at a time. How do we catch the VAT leakage on download purchases or postal deliveries?


Sign a comprehensive NDA and work with Netsweeper to understand the Netsweeper eCommerce VAT Enforcement and Collection Solution and how we can work together.

Work with Netsweeper to analyze and address the current laws in place and how to ensure the laws apply to the proposed government/Netsweeper Solution.

There is only one entity that should be collecting VAT and tax. Not Amazon, and not Netsweeper. It should be the government. We want to discuss the possibility of forming a ‘Private Public Partnership’ with Netsweeper where the government owns controlling interest; Netsweeper contributes technology, patents, knowledge, executes, and supports the solution. The government controls and manages the eCommerce VAT Enforcement and Collection solution.