default vat treatment square

default vat treatment square

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Trying to work out vat treatment of squarespace fees.

I have defaulted to looking at their website which is super sketchy as it mentions being eligible for vat exemption in your particualr country. That really makes no sense to me - would i be correct in assuming this is a very poor way of asking bods to confirm they are a uk business entity  and supliess will be subject to reverse charge once flagged on their systems?

second point does anyone know if the default vat type for their standard transactions fees are exempt bank fees (ala paypal) or standard rated fees for services provided (ala go cardless?)

There is decent chance i may be missing something fundamental here - eg i am presuming square are not uk vat registered ref services they provide to buisness customers.

cheers 

 

 

 

https://support.squarespace.com/hc/en-us/articles/206951427-VAT-and-Squa...

Verify your exemption (EU, UK, and Norway)

If you run a site for a business in the EU, UK, or Norway and are exempt from VAT collection, follow these steps. You’ll need:

Your business name

Your VAT Registration Number or Norwegian Organization Number

Replies (3)

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chips_at_mattersey
By Les Howard
16th Dec 2021 15:02

It looks like supplies made by squarespace to UK business customers are subject to the Reverse Charge. They describe this as VAT 'exemption.'

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Replying to leshoward:
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By rmillaree
16th Dec 2021 15:10

Cheers Les - that seemed like the most obvious answer , albeit it didnt really make sense to me not saying reverse charge if it is reverse charge. Perhaps if the fees are exempt from vat anyway then that is an aceptable explanation from their point of view. Presumably if exempt bank fees nothing to actually reverse charge here anyway even if reverse charge would have ben applicable had the supply been standard rated.

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Replying to rmillaree:
chips_at_mattersey
By Les Howard
17th Dec 2021 17:25

'bank fees' covers a range of services, not all being exempt. It might be prudent to treat as taxable Reverse Charge supplies.

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