UK VAT to be charged on Go Cardless transactions
June 8, 2020
The UK tax authority changes their guidance and VAT will now apply to Go Cardless transaction fees.
Companies accepting invoice payments via the GoCardless payment service will now be required to pay Value Added Tax (VAT) across all of the fees charged by Go Cardless.
The change follows a change in the HMRC guidance and instructions to charge VAT from the 14th April 2020 on all of our fees for supplies made in the UK at the UK Standard Rate (currently 20%).
In an email to customers, Go Cardless said “Given the current situation with Covid-19, we have decided to absorb the cost of VAT for existing customers until 1 September so that we can give you sufficient notice to adapt to this change. We will start to charge VAT on all of our fees from 1 September 2020. When transaction fees are capped, VAT will be calculated on the capped amount.”
According to Go Cardless UK companies registered for VAT will be able to recover the cost of VAT in the normal way. However, if the goods/services you provide are VAT exempt or you are underneath the VAT threshold then you won’t be able to reclaim the cost of VAT.
Categories : Around the Industry
Tags : Go Cardless UK VAT
