EU VAT is imposed based on Seller Commission.
EU VAT Rule on Commission Tax
1. All products except Coaching and Boosting service
- Charge EU VAT on Seller Commission when the Buyer is from EU countries and transact in EUR currency, G2G will collect VAT by following the EU Buyer's country rate.
Scenario: Assuming buyer is from EU country and paid in EUR currency
Single Tax Scenario: UK Seller & Austria Buyer | Double Tax Scenario: Singapore Seller & Austria Buyer *Double tax rule occur when the seller's location is 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
- Charge EU VAT on Seller Commission when the Seller is from EU and offer price listed in EUR currency, G2G will collect VAT by following EU Seller's country rate.
Scenario: Assuming Seller is from EU country and offer price listed in EUR currency
Note: EU VAT will vary and change according to their 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 |