Value Added Tax (VAT) is a tax assessed on the supply of goods and services. In certain countries, such tax may be referred to as Goods and Services Tax (GST), service tax, or consumption tax (collectively referred to as “VAT” in this article).
Add VAT Your Account > Dashboard > Your storage location > Basic profile to let us know you are registered for VAT.
This section will explain the revenue calculation process for VAT-registered and non-VAT registered Storage Service Providers.
This article only concerns storage location in the EU.
VAT-Registered Storage Service Provider:
Local VAT refers to the value-added tax charged by the Storage Service Provider's jurisdiction. The specific VAT rate can vary.
Danish VAT: In the case of a VAT-registered Storage Service Provider, Danish VAT does not apply due to the reverse charge mechanism.
Revenue Calculation:
The Storage Service Provider charges a total Booking Fee, which includes the applicable local VAT.
LuggageHero deducts the Commission and Service Fee from the total Booking Fee.
LuggageHero forwards the remaining amount (after deduction) to the Storage Service Provider.
The Storage Service Provider pays the local VAT to the respective tax authorities.
The net revenue for the Storage Service Provider is the remaining amount after all deductions.
Non-VAT Registered Storage Service Provider:
Local VAT: Similar to VAT-registered providers, non-VAT-registered providers may also have a local VAT rate.
Danish VAT: In the case of non-VAT registered providers, Danish VAT is applicable as the reverse charge mechanism does not apply.
Revenue Calculation:
The Storage Service Provider charges a total Booking Fee, including the applicable local VAT.
LuggageHero deducts the Commission and Service Fee and the Danish VAT from the total Booking Fee.
LuggageHero forwards the remaining amount (after deductions) to the Storage Service Provider.
The Storage Service Provider pays the local VAT to the respective tax authorities.
The net revenue for the Storage Service Provider is the remaining amount after all deductions.
These calculations may vary based on specific circumstances and local tax regulations.
We encourage you to consult your tax advisor if you need assistance assessing VAT on the services you provide.
Disclaimer
The information here is a general guide only, which does not consider your personal circumstances, is not meant to be tax advice, and should not be used as such. We suggest you consult your tax advisor or local tax authorities if you have any questions about taxes.
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