Does PayPal charge VAT on their commission?

markmclaren · Aug 21, 2008

Can someone who uses PayPal please tell me:

Does PayPal charge VAT on their commission?

thanks

Christiane · Aug 21, 2008

Not that I am aware of, they are ''pseudo bank'', although not regulated in the UK.

Like ebay they would ask for your VAT number as the fees would be ex vat since they are not registered in the UK.

UKSBD · Aug 21, 2008

Are they not just classed as bank fees for handling money, i.e exempt from VAT?

Christiane · Aug 21, 2008

Yes. That's I meant, in a confusing way ;-)

Optegris · Aug 22, 2008

They are just like bank charges and should be treated the same way through your accounts.

LianneF · Oct 12, 2008

Hi
Sorry to bring up an old thread but just to clarify that paypal and ebay fees as well as bank charges are exempt from vat and go as T9 on your vat return through sage?
Thanks
Lianne

Christiane · Oct 12, 2008

allthingsgifts said:
Hi
Sorry to bring up an old thread but just to clarify that paypal and ebay fees as well as bank charges are exempt from vat and go as T9 on your vat return through sage?
Thanks
Lianne

Paypal fees are classed as bank fees/charges, so VAT exempt.
Ebay fees are subject to VAT, if you are VAT reg, they charge you the fees minus VAT. No idea where they go on the VAT return as my accountant does it :redface:

David P · Oct 13, 2008

http://www.ukbusinessforums.co.uk/forums/showthread.php?t=73577&page=2

here is link to my old discussion on this

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Does PayPal charge VAT on their commission?

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