What Are Taxes?
Taxes has appeared in ancient times, but they use to name it differently. Let’s take an ancient Rome: Tributum soli, the tax on land; Aes uxorium – a tax on unmarried men and women who could bear children; Centesima rerum venalium – a tax on goods sold at auction; Vectigal – a tax on occupiers of Roman state land; Fiscus Judaicus – an additional tax, was applied to the Jews in the Roman empire. The Roman tax system has changed many times over the years, and varied quite a bit from region to region.
According to Investopedia taxes are involuntary fees levied on individuals or corporations and enforced by a government entity—whether local, regional or national—in order to finance government activities. In economics, taxes fall on whomever pays the burden of the tax, whether this is the entity being taxed, such as a business, or the end consumers of the business’s goods.
According to Tax Policies Survey, since 2010, the total tax revenue as a percentage of the gross domestic product (GDP) has increased in most Member States of the European Union. The overall level of tax revenues (as a % of GDP) decreased marginally comparing 2000 and 2010 – after a gradual increase until 2008 and a drop following the crisis. Following economic recovery, EU-28 tax revenues (as a % of GDP) have been increasing again since 2011, reaching 38.9% of GDP in 2016.
So, here we tried to find the best tax software for the common use, working in Europe or making the service globally.
TOP 6 Tax Software
1. Vertex
Vertex solutions automate VAT determination and compliance, eliminating manual processes, improving accuracy, and giving the tax department the agility to support growth across Europe, and around the world.
2. Guaderno
The Quaderno team works remotely from Spain, Germany, and the USA. Quaderno takes taxes off your plate by automatically calculating tax on every sale and following up with beautiful invoices, no matter where your customer is located.
3. Freeagent
The mission of the company is to streamline business admin for small businesses.
4. GoSimplex Tax
GoSimpleTax was established in 2013 with the mission of providing a Self Assessment solution for individuals to submit their tax return to HMRC without the need for an accountant. The software uses artificial intelligence designed to offer nudges and prompts to help you calculate the correct tax, whilst ensuring that no allowances or savings are missed.
5. Credit Karma
Credit Karma is one of the few tax filing software services that truly delivers free tax filing for Federal and State taxes.
6. Hello Tax
The company has created various VAT services to reduce the workload and help you staying tax compliant within Europe.
Final Thoughts
PWC has prepared an overall ranking and data tables for each country. You can check your country’s tax system here. Nowadays everybody pays taxes, this topic has become significant to every citizen, no matter the country of origin. According to Statista, in 2019, the highest income earners in Sweden pay 57.19%, more than anywhere else in the world. This is significantly more than the OECD average of 41.65%. In general, income taxes are higher in the Nordic countries. The highest taxes being in Denmark 55.89%, Finland 53.75% and Iceland 46.24%. There are so many things business need to be aware, and of course when realizing your idea into a market decision, remember about Audit. Knowledge of the business is of utmost importance today. Also check out our expert’s opinion on things that will help you to innovate.
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