Paypal - do they charge VAT as part of their fees?

motorguy

ie, the amount they deduct from a transaction, does that include vat, and thus can a business claim the vat back (being vat registered)

thanks in advance

Paul

kevinyork

I cant find a specific reference on their site however I dont believe there is any VAT on thier fees.

This is because the service they provide is exempt from VAT as a financial service, like banks (who also dont charge VAT on financial services).

If I find a definitive link I will post it.


Kev

motorguy

kevinyork wrote:

I cant find a specific reference on their site however I dont believe there is any VAT on thier fees.

This is because the service they provide is exempt from VAT as a financial service, like banks (who also dont charge VAT on financial services).

If I find a definitive link I will post it.


Kev

Cheers, i;ve been rooting around too and can find no reference on their site to vat on fees, so presumably the service they provide is exempt...

Ta

LongDongDave

pgilc1 wrote:

ie, the amount they deduct from a transaction, does that include vat, and thus can a business claim the vat back (being vat registered)

thanks in advance

Paul

I don't think they do charge VAT. I've got a credit card terminal in my regular business and the card processor (RBS) don't charge VAT on the transactions, but do chrage VAT on the rental of the terminal (on the same invoice)