If you have not registered VAT details with the site, Place of Supply VAT will be applied to the Advisor and Facility Fees as well as Administration fee upon withdrawal for those in the EU.
Go here (Group Managers) to provide your VAT registration details which allow us not to charge VAT under the Reverse Charge Provision.
It can be confusing as these charges don't simply add together; it is a percent of a percent. We've given an example below to try and help you understand.
Example 1: Credit Withdrawal, No VAT Applied
Credits available to transfer = 100 credits
Admin Fee (excluding VAT) = 30 credits (30% of the available credits)
The money you receive = £70
Example 2: Credit Withdrawal, VAT Applied
Credits available to transfer = 100
Admin Fee (including VAT) = 35.7 credits (30% of the available credits + 19% of the Admin fee)
The money you receive = £64.3
Example 3: DirectCam Earn, No VAT Applied
Session value = 10 credits
Facility Fee = 0,75 (7.5% of the session Value)
Credits you can withdraw = 9.3 credits
Example 4: DirectCam Earn, VAT Applied
Session value = 10 credits
Facility Fee = 0.9 Credits (7.5% of the session value + 19% of the Facility Fee)
Credits you can withdraw = 9.1 credits
For EU VAT Registered Groups:
No VAT is being deducted on admin fees for EU Offering Members that are under a VAT Group (as mentioned above), but Insite and Display acquisitions, Facility fees, and Advisors fees are being charged VAT.
Following the rules of Cyprus Vat legislation, the admin fee is deemed to be offered to the person receiving the funds (which is the “Group” in this case), whereas, on most of the other services, the service is offered to the individual Offering Members, so the particular VAT circumstances of the Offering Members trigger the VAT treatment.