Collecting VAT

This article tries to help you understand Value Added Tax in Europe and is not legally binding. It is understood that we are not tax professionals nor your counsel. If you are subject to VAT, you should seek professional help.

FairPay does not collect & remit VAT on your behalf.

As a marketplace, we do not collect and remit VAT on your behalf.

When your customer purchases a good or service from you on FairPay, he pays the sum of two amounts :

The price of the good or service you are selling
Our Service Fee that was added on-top

FairPay collects and remits VAT on the Service Fee it charges customers.

FairPay does not collect nor remit VAT on the good or service you are selling - this is for you to do.
 

FairPay provides you with the country of your customers

When you export your transaction log, we will indicate the country of your customers and the VAT rate we have applied when charging your customer our Service Fee.


This information, along with the financial data of the transactions, will allow a certified accountant to calculate how much VAT you should have collected and should remit.

FairPay charges you VAT on all its fees

If you reside in Europe, we add the corresponding VAT rate whenever we charge you a fee.

You can subtract this amount from the VAT you owe - please seek help from a certified accountant.

Updated on: 21/05/2023