Zetamex has customers all over the world and we have seen business from countries as far away as Australia. As a result we have been dealing with all sorts of different laws regarding business and more particularly taxation. As we are based within the European Union we have to pay VAT or Mwst. This means that a percentage of our income directly goes to the customers government. Additionally we are required to pay taxes on all of the servers and systems we receive from outside the EU, which means 19% on top of the bills for servers, services and products we acquire to provide our service to you.
Of course all of that can be difficult to handle and requires a large amount of paperwork. This invites people to use shadow companies to launder money into other countries and there is a potential for tax evasion. To counter this the German Ministry of Finance audits new business and existing international businesses regularly to make sure everything is in order. They make sure everyone pays their taxes and that no schemes are being employed to shovel money past the taxman.
We highly welcome these audits as a measure to provide a level playing field for businesses and customers alike. They provide the needed security and allow for the market to grow without leaking funds into dubious schemes. These audits also help us judge how well we are keeping track of our books and allow us to optimize our billing process. With the audit complete we have found a few things that required improvement and this gives us a much better footing to grow. As of now we have opted to stay without full taxation, which for our size is the most cost effective option. Eventually our growth will force us to opt to full taxation, which means a number of things. More on that once we have hit that point, rest assured not much will change any time soon.
Another thing this audit has provoked is a hard look at our expenses. We have found a few ways to reduce our cost and, at the same time, increase our effectiveness. As a result a few migrations will take place over the coming weeks and months. These will increase the quality of the service we provide. Eventually these savings will allow for funding to new projects and never before seen features. We hope you are as excited as we are.