Being an eCommerce trader is not just about selling and buying your products and services, but many other things follow. For instance, you are expected to know about VAT and other taxes on PayPal fee transactions. But that need not always be the case. Here in this article, we will be telling you about VAT On PayPal Fees, and read on to know everything in detail.
Is There VAT On PayPal Fees?
Knowing and handling VAT taxes can be confusing at times more when you have to transact money through PayPal and other cash transferring mediums. To know more about VAT on PayPal fees, you need to learn about reverse charges and VAT exemption in the UK.
What is the reverse charge?
If you are from another country than the EU, post-Brexit, then you will be charged according to the reverse charge VAT rules and regulations.
As the name goes, reverse charges the customer pays the VAT as their own VAT return. The supplier does not receive it due to primary two reasons :
if it is an international purchase
if it is an anti-fraud step
Coming back to the question of the hour, Is There VAT On PayPal Fees?
No, PayPal is a financial service, and generally, such services are exempt from VAT. PayPal doesn’t charge VAT on services that its customers use for eCommerce and trading.
This means that PayPal won’t charge you VAT for using its services for eCommerce traders.
Is there VAT on Stripe fees?
No Stripe charges no Value Added Tax (VAT) from its customers in the EU located outside of Ireland.
If you are a trader and are confused with taxes and financing and are looking for the best vat accountants and advisors, then reach out to us at Pearson McKinsey. We can help you get connected with an expert tax advisor or accountant for your service. We are renowned for our personalised advisory services to our customers.