Is there VAT on Stripe fees?

VAT on Stripe fees and the reverse charge

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Stripe are based in Ireland and therefore in the EU. From what I have been able to find out, Stripe are a payments facilitator and therefore Stripe fees are not VAT exempt, whereas PayPal is a financial service and therefore PayPal fees are VAT exempt. The explanation for this is given here: https://yourecommerceaccountant.co.uk/is-there-vat-on-paypal-or-stripe-f...

I therefore have to account for the VAT using the reverse charge system.

I use AccountsPortal and in their help guide, they give the following information:

Reverse Charge:

  • VAT Treatment = 22 - Goods from EU Supplier and VAT Type = Standard Rate Reverse Charge
  • VAT Treatment = 23 - Services from EU Supplier and VAT Type = No VAT

Do I select option 22 which says Goods from EU Supplier?

However, can you really describe Stripe fees as Goods? Are Stripe fees definitely not VAT exempt?

Any guidance or help you can give on this matter would be greatly appreciated. Thank you.

Replies (2)

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RLI
By lionofludesch
12th Apr 2024 14:15

"However, can you really describe Stripe fees as Goods?"

Well, I'd be looking at the rules for services.

Thanks (2)
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By rmillaree
04th Jun 2024 16:38

does anyone know if this linked guidance is correct - my worry here is that teh linked article is dated in 2021 - i wouldnt presume they operate now in exactly the same manner as they did in 2021 - practicably speaking the fees they take are almost identical to paypal fees.

second worry is that ten linked website is pretty randowm anyway

I have done mini google seacrh and i cant see any specific reason to change my mind.

stripe invoices dont help as they simply state - Reverse Charge VAT may be applicable

to be fair to stripe they are in eu and its not their problem how the uk treat payment providers for vat purposes so dont blame them for pleading the 5th

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