What is VAT and how does it affect my transactions?

VAT stands for Value Added Tax. It’s a consumer (customer) tax on sales for most goods and services in the European Union (EU). It differs from sales tax as it’s collected throughout the supply chain. The way you report the VAT from your Mollie transactions varies based on where your organisation is registered.

What you need to know in advance

  • The rates mentioned on our website do not include VAT. 
  • All countries have specific rules and regulations for VAT for goods and services. Your local tax authorities can advise you about the particular VAT obligations for your business.
  • There is a distinction between the VAT on sales to your customers and the VAT applied to our fee for using our payment services. 

The VAT you charge your customers 

The VAT you have to charge your customers can differ depending on your specific business situation and the country you are registered in. Your local tax authorities can advise you about the particular VAT obligations on your sales.

 

The VAT on your fee when using our payment services 

Your VAT obligations may differ depending on the country your organisation is registered in.

The Netherlands

 

We automatically apply and report the required 21% service Dutch VAT to our fee. You can find how much VAT you paid by looking at your invoices

 

Belgium 

 

VAT on our fee is reverse-charged. This means that you need to calculate and report the VAT to your local tax authorities in your VAT return. Your invoices will mention that your VAT is reverse-charged.

 

Germany

 

VAT on our fee is reverse-charged. This means that you need to calculate and report the VAT to your local tax authorities in your VAT return. Your invoices will mention that your VAT is reverse-charged.

 

France

 

VAT on our fee is reverse-charged. This means that you need to calculate and report the VAT to your local tax authorities in your VAT return. Your invoices will mention that your VAT is reverse-charged.

 

French Territories

 

You do not need to charge VAT if your business is registered in Guadeloupe, French Guiana, Martinique, Réunion, Mayotte, Saint-Martin and other overseas French territories.

 

Other EU/EEA country

 

VAT on our fee is reverse-charged. This means that you need to calculate and report the VAT to your local tax authorities in your VAT return. Your invoices will mention that your VAT is reverse-charged.

  • For more information about your VAT obligations for your business, visit the YourEurope website.

 

Outside the EU

 

Our invoice will not mention that VAT on our fee is reverse-charged, but based on local legislation you might need to calculate and report VAT to your local tax authorities in your VAT return.

  • This also applies if your business is registered in the UK. 

 

 

Good to know

When you complete your VAT return, you are often refunded the VAT you paid to or reported on your suppliers. This is because the VAT you charge your customers offsets the VAT you get charged as a business. 

 

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