What kind of tax is applied to my invoice?

Adyen adds VAT / GST / sales tax on invoices to our merchants. There is a different tax logic for:

  • Services (processing service invoice & terminal service invoice). For services invoices the VAT will be charged based on the address of the Sold - to entity (merchants’ entity).
  • Goods (terminal sales) invoices. VAT will be charged for terminals and terminal accessories based on the country/region the goods are shipped to. This is different to services, where the location of the entity is relevant.
  • Issuing invoices

Tax logic on services

If the merchant entity and an Adyen entity are in the same country/region, Adyen will invoice from that local entity with VAT / GST / indirect tax where applicable. If the merchant is based in the Netherlands, the service will be subject to 21% Dutch VAT. If there is not an Adyen entity in that country/region (e.g. Slovenia), Adyen NV will invoice the merchant cross-border. More information is set out below.

Tax logic on goods

In the EU, the Ship-From is always the Netherlands. 21% VAT is charged on terminals shipped to the Netherlands. For other EU countries, Adyen NV charges 0% VAT on the invoice unless the merchant cannot provide a valid VAT registration number in the Ship-To country/region. In this case Adyen charges 21% Dutch VAT.

For terminals shipped to Norway, Switzerland and the UK Adyen NV will charge local Norwegian, Swiss or UK VAT as they are outside the EU customs area.

Outside of Europe, the terminal will be sold by the local Adyen entity where the terminal is shipped to (e.g. a sale of terminals shipped to Australia will be invoiced by Adyen Australia). Local taxes will be applied in line with the specific country/region rules below.

Location

Services (taxed on the address the services are sold to)

Goods (based on address the goods are shipped to)


Europe


Adyen NV - Dutch merchants

21% Dutch VAT

21% Dutch VAT


Adyen NV - non-Dutch merchants (except in countries listed below)

0% VAT

0%, unless a terminal is shipped within the EU and Adyen does not receive a valid VAT registration number. In this case Adyen NV must charge 21% Dutch VAT.


Adyen NV - Spain

Acquiring services exempt from VAT, gateway 21%

Goods shipped from Adyen NV to merchants in Spain will have a VAT rate of 0% when a valid Spanish VAT registration number is provided. If it is not, Adyen NV must charge 21% Dutch VAT. These will be sold by Adyen NV directly to the merchant


Adyen NV - France

20% French VAT

Goods shipped from Adyen NV to merchants in France will have a VAT rate of 0% when a valid VAT French VAT registration number is provided. If it is not, Adyen NV must charge 21% Dutch VAT. These will be sold by Adyen NV directly to the merchant


Adyen NV - Switzerland VAT registration

0% (currently invoiced from Adyen NV - Netherlands)

7.7% Swiss VAT on all terminals shipped to Switzerland


Adyen NV - UK VAT registration

0% (currently invoiced from Adyen NV - Netherlands)

20% UK VAT on all terminals shipped shipped to the UK (including Northern Ireland)


Adyen NV - Norway VAT registration

0% (currently invoiced from Adyen NV - Netherlands)

25% Norwegian VAT on all terminals shipped to Norway


North America


Adyen Canada

Adyen charges GST / HST / QST / PST / RST as applicable based on the merchant’s province

Adyen charges GST / HST / QST / PST as applicable based on the province the goods are shipped to


Adyen NV - San Francisco branch

Adyen is registered for sales tax in most states in the US, and will charge sales tax as applicable based on the merchant’s state and location within that state. Most of Adyen’s services are exempt.

Adyen is registered for sales tax in most states in the US, and will charge sales tax as applicable based on the state and location within that state that the goods are shipped to.


Adyen Mexico

16% Mexican VAT

16% Mexican VAT


APAC


Adyen Australia

10% Australian GST

10% Australian GST


Adyen Hong Kong

Hong Kong does not have a VAT / GST system, so no taxes are charged on the invoice.

Hong Kong does not have a VAT / GST system, so no taxes are charged on the invoice.


Adyen Japan

10% Japanese Consumption Tax

10% Japanese Consumption Tax


Adyen Malaysia

Non-terminal services are charged at an exempt rate, so we do not charge SST. The invoice shows the SST that would have been charged if the supplier was required to charge SST. Terminal services are subject to 6% SST.

Goods shipped to Malaysia are SST exempt


Adyen New Zealand

15% New Zealand GST

15% New Zealand GST


Adyen Singapore

8% Singapore GST

8% Singapore GST


Adyen Middle East (UAE)

5% UAE VAT

5% UAE VAT

 

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