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
9% Singapore GST
9% Singapore GST
Adyen Middle East (UAE)
5% UAE VAT
5% UAE VAT
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