Stripe (incorrectly?) charging VAT in Ireland

Cond0r

I'm not sure if this is the correct board, mods: please move if another is more appropriate.

I started using Stripe for a Thing, and noticed that they're charging VAT on fees in Ireland (and Australia, but I don't know the laws there), and nowhere else.

From my reading of the citizens information page on VAT, it suggests that financial services are exempt from VAT.

Am I wrong, or are they incorrectly charging VAT?

ohnonotgmail

Presumably stripe are an australian company providing financial services? If so is there VAT on financial services in Australia? If so then they will charge you that VAT. Except if they are registered for VAT in this country in which case they would charge the VAT rate that applies here and remit it to the revenue commissioners. Unless they do significant business in Ireland they are unlikely to be registered for VAT here.

Cond0r

ohnonotgmail wrote: »

Presumably stripe are an australian company providing financial services? If so is there VAT on financial services in Australia? If so then they will charge you that VAT. Except if they are registered for VAT in this country in which case they would charge the VAT rate that applies here and remit it to the revenue commissioners. Unless they do significant business in Ireland they are unlikely to be registered for VAT here.

They're an American company, but also registered as a company here.

The VAT they charge is very specifically Irish VAT (sorry, probably should've included these links in the original post):
https://stripe.com/ie/pricing
https://support.stripe.com/questions/vat-on-stripes-fees

ohnonotgmail

The statement on the citizens information page is rather broad. The financial services that are VAT exempt is strictly defined. It is not a blanket exemption. after a quick read of the relevant section in this document (Warning:PDF) http://www.revenue.ie/en/tax/vat/guide/sch1-exempted-activities.pdf (Page 7 onwards) i cant see how the Stripe services would fit any of these categories.

Cond0r

ohnonotgmail wrote: »

The statement on the citizens information page is rather broad. The financial services that are VAT exempt is strictly defined. It is not a blanket exemption. after a quick read of the relevant section in this document (Warning:PDF) http://www.revenue.ie/en/tax/vat/guide/sch1-exempted-activities.pdf (Page 7 onwards) i cant see how the Stripe services would fit any of these categories.

Oh, I hadn't spotted that PDF, thanks!

But, specifically from that (Part 2, 6. (1) (c):

(c) operating a current, deposit or savings account,
and negotiating or dealing in payments, transfers,
debts, cheques and other negotiable instruments,
but excluding debt collecting and factoring;

(^ Emphasis mine)
This pretty much describes exactly what Stripe does.

Cond0r

Oh, also, what prompted me to wonder about this in the first place is that Paypal (arguably Stripe's biggest competitor) do not charge VAT in Ireland.

ohnonotgmail

I had never heard of Stripe before today so i cant give you a definitive answer. Perhaps they are charging for access to their API and so VAT would apply in that instance. the only definitive answer you will get is from Stripe themselves.

Cond0r

ohnonotgmail wrote: »

I had never heard of Stripe before today so i cant give you a definitive answer. Perhaps they are charging for access to their API and so VAT would apply in that instance. the only definitive answer you will get is from Stripe themselves.

Yep, I have a support ticket open with them -- waiting for a response. I was curious if anyone around here might be better versed in VAT application than me.