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.