How to treat Stripe Fees and VAT

[user290922]

We are a UK Ltd Company thats VAT registered. Using Stripe for processing our payments, there is no VAT charged however we are struggling to work out if this is meant to be a RC 20% or if Stripe Fees are Zero Rated. 

Would anyone have any advice?

[Trevor S]

I’ve never used Stripe – but if you check their invoices, do they show a UK (GB prefixed) VAT registration number, or a foreign one?

If it’s a GB number, then it’s possible that their services may fall within a VAT exemption (unlikely to be covered by a zero rating).   See HMRC VAT Notice 701/49: https://www.gov.uk/government/publications/vat-notice-70149-finance

If the nature of the services aren’t covered by this exemption and Stripe are only established overseas, you’ll need to do the reverse charge.

[Author]

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