Is VAT charged on shopify payment transaction fees?

Shopify Discussion
1

Hi there,

We are VAT registered business using shopify in the UK.

Does shopify handle VAT on its transaction fees in the same way as it does with the other fees (such as subscription fees) it charges us? I cannot find any VAT invoices for the transaction fees so cannot clarify how vat is being charged/not charged on them.

Thanks.

Thomas.

1 Like
2

HI Thomas, I am in the same situation and this is a question I need an answer for.

3

Hi there, @thomas_hunt123 ! Thanks for taking the time to reach out to the Shopify Community regarding your question around VAT and Shopify Payments fees. My name is Imogen. It’s good to meet you!

I’ve consulted some internal resources here and have the following information to provide! VAT is not charged on Shopify Payments fees for businesses operating out of the UK. Businesses in some regions will be charged taxes on processing fees, but if you’re a business in the U.K, this does not apply to you. We have a help document here that outlines this information, as well as outlining what regions will have taxes applied to their fees. I hope this information is helpful!