We’ve finally closed a deal today and signed a new contract with a new tax firm while changing our company classification to a full-blown escrow company. In three days, we will have the same rights to client’s funds as Escrow.com.
What does it mean for you?
- EU-based companies will be able to file sales with their revenue service without worrying about us adding reverse VAT charges.
- No more taxed funds on money held longer than 30 days.
What does it mean for SWAPD?
In the past, our company was classified as a normal business which caused us to get creative with invoicing while dealing with client’s funds. Now, we’re classified as a financial institution with full permission to accept and hold our member’s funds, without any tax. On top of it, we can now legally issue loans 
But this is something we don’t plan on doing.
We’re still waiting for a final letter from our tax revenue service that will confirm everything, so at the moment, I’d say we’re at 99% readiness. Since our tax revenue is slow, we won’t get a response until around March. However, our tax firm said we can start operating normally starting the new year.
Thank you to everyone who worked with us through the time when we were growing and had to work around some of the tax laws to keep operating.
To compare, our old tax firm took around 200.