EU VAT Rule on Commission Tax
1. All products except Coaching and Boosting services
EU VAT will be charged on the Seller's commission when the Buyer is from an EU country. G2G will collect VAT according to the rate applicable in the Buyer's country.
Scenario: Assuming the buyer is from an EU country
| Single Tax Scenario: UK Seller & Austria Buyer | Double Tax Scenario: Singapore Seller & Austria Buyer *Double tax applies when the seller is from SG/ID/AU | |
| Selling Price | GBP 100.00 | SGD 100.00 |
| - Seller Commission @ 4.99% | GBP 4.99 | SGD 4.99 |
| - GST | NA | SGD 0.40 (SGD 4.99 x Singapore GST @ 8%) |
| - Austria VAT @ 20% | GBP 1.00 (GBP 4.99 x Austria VAT @ 20%) | SGD 1.00 (SGD 4.99 x Austria VAT @ 20%) |
| Net Earning Payable to Seller | GBP 94.01 | SGD 93.61 |
2. Coaching and Boosting services
EU VAT will be charged on the Seller's commission when the Seller is from an EU country. G2G will collect VAT according to the EU Seller's country rate.
Scenario: Assuming the Seller is from an EU country
Note: EU VAT will vary and change according to the respective EU country VAT rate.
| Single Tax Scenario: Portugal Seller & Singapore Buyer | |
| Selling Price | EUR 100.00 |
| - Seller Commission @ 4.99% | EUR 4.99 |
| - Portugal VAT @ 23% | EUR 1.15 (EUR 4.99 x Portugal VAT @ 23%) |
| Net Earning Payable to Seller | EUR 93.86 |
The applicable VAT for the respective countries is as follow:
Country | VAT Rate | Country | VAT Rate |
| Austria | 20 | Italy | 22 |
Belgium | 21 | Latvia | 21 |
Bulgaria | 20 | Lithuania | 21 |
Croatia | 25 | Luxembourg | 17 |
Cyprus | 19 | Malta | 18 |
Czech Republic | 21 | Netherlands | 21 |
Denmark | 25 | Poland | 23 |
Estonia | 22 | Portugal | 23 |
Finland | 25.5 | Romania | 19 |
France | 20 | Slovakia | 23 |
Germany | 19 | Slovenia | 22 |
Greece | 24 | Spain | 21 |
Hungary | 27 | Sweden | 25 |
Ireland | 23 | ||
Source: https://taxfoundation.org/data/all/eu/value-added-tax-vat-rates-europe/