VAT on transaction fees

Equivalent to iZettle etc.

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I note there is no VAT on iZettle charges and others who offer the same service. Is this because it is a reverse charge supply so if a UK company were looking at offering a similar service it would be fully VATable? 

HMRC guidance seems to state it is not exempt but I havent ever seen a credit card fee from someone like iZettle subject to VAT? 

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By Duggimon
08th Mar 2021 15:55
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By Jigs
08th Mar 2021 17:59

Thank you - Just seen this re: Go Cardless?

VAT Help — Documents
GoCardless is now required to charge VAT across all of the fees that we charge for our services provided to merchants located in the UK and France. This is due to a change in the application of tax law which means we can no longer benefit from a VAT exemption applying to the supply of payment services.

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Replying to Jigs:
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By rmillaree
09th Mar 2021 18:51

Must admit i had seen the Go cardless change which was backdated to april and was wandering if there is any read across to other providers - i can only guess providing a service to collect funds by direct debit is seen as a being different to a basic bank/credit card charge.

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