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Paypal fee & VAT

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  • 04-01-2016 1:57pm
    #1
    S. Goodspeed
    Registered Users Posts: 418 ✭✭


    Hi guys,

    Hopefully someone with experience of paypal in their business can help me out here.

    I offer paypal and stripe on my checkout page for my website. With stripe I can easily download monthly invoices to show what fees they have charged me including the VAT at 23%. I can't however find the equivalent invoices from my paypal account. Also i did a quick calculation and it looks like they are not deducting VAT from my transaction (i.e their fee is 3.4% + 35c and thats all they are deducting, not 3.4% plus VAT). I've contacted them but waiting on a reply and have googled around and it seems like others have the same question but the answers aren't very clear to me.

    Is there some reason why Paypal don't have to collect VAT? Is there service zero rated or something? Seems very strange that Stripe would be different.


    Thanks in advance


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    #2
    StupidLikeAFox
    Registered Users Posts: 7,711 ✭✭✭StupidLikeAFox


    Here you go, the first answer on this thread is answered by a PayPal rep. They don't charge VAT on their fees:
    https://www.paypal-community.com/t5/Selling-on-your-website/UK-VAT-on-paypal-fees/td-p/140041?profile.language=en-gb


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    #3
    S. Goodspeed
    Registered Users Posts: 418 ✭✭S. Goodspeed


    Thank you. Seems strange that they are not obliged to charge VAT on the service they are providing. Works for me though!


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    #4
    StupidLikeAFox
    Registered Users Posts: 7,711 ✭✭✭StupidLikeAFox


    Bank charges are VAT exempt - it might fall into that category


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    #5
    jimmii
    Registered Users Posts: 14,810 ✭✭✭✭jimmii


    StupidLikeAFox wrote: »
    Bank charges are VAT exempt - it might fall into that category

    This is what I was told before as to why.

    Didn't know Stripe were charging vat will have to check that out!


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    #6
    Innov
    Registered Users Posts: 37 ✭Innov


    S. Goodspeed wrote: »
    Hi guys,

    Hopefully someone with experience of paypal in their business can help me out here.

    I offer paypal and stripe on my checkout page for my website. With stripe I can easily download monthly invoices to show what fees they have charged me including the VAT at 23%. I can't however find the equivalent invoices from my paypal account. Also i did a quick calculation and it looks like they are not deducting VAT from my transaction (i.e their fee is 3.4% + 35c and thats all they are deducting, not 3.4% plus VAT). I've contacted them but waiting on a reply and have googled around and it seems like others have the same question but the answers aren't very clear to me.

    Is there some reason why Paypal don't have to collect VAT? Is there service zero rated or something? Seems very strange that Stripe would be different.


    Thanks in advance

    Hi There,

    Did Paypal come back to you on this? Is the Transaction fee VAT exempt?

    I have been deducting VAT for the paypal fee for my VAT3 returns but seems like I was wrong (reading the above post) so would like to clarify. If you can let us know that would be great.

    Thanks in advance.


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    #7
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    S. Goodspeed wrote: »
    Thank you. Seems strange that they are not obliged to charge VAT on the service they are providing. Works for me though!



    if you specify a VAT number with Stripe do they collect it then or are you just liable for it when you make your returns at the end of the tax year?


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