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Can I pay for VAT using coupons?


To keep things simple, it is a principle of PayCoupons that you can use coupons for everything where the issuer would accept the same amount of money. This includes the VAT portion of your purchases.

Now of course nobody wants to receive a payment for VAT in coupons and then lose "real" money because the state demands that VAT paid in money. But this does not happen if you follow these simple rules: (1) Only spend coupons for business expenses, and (2) only order coupons from companies that have the same VAT status as your company (VAT exempt or not).

Here are examples how these rules work:

  • If you are a VAT liable business, your invoices contain VAT and you have to forward that VAT to the state in money. However, you can deduct the VAT you paid included in any of your business expenses. Now if you only order coupons of other VAT liable businesses, all your turnover in coupons is offset by expenses in coupons, and both contain the same amount of VAT. In effect, you do not have to pay any VAT to the government in this case, so you don't lose money because "somebody paid their VAT in coupons" to you. You did the same, and one offsets the other.
  • If you are a VAT exempt small business, your invoices do not contain VAT. Since you cannot use VAT pre-tax deduction, it does not matter for you if the invoices you pay with coupons contain VAT or not. However, if they contain VAT, there must be somebody else who receives a VAT payment in coupons and has to pay it to the state in money, because PayCoupons trades are always circular and balanced. So when you make sure you leave suppliers with VAT in their invoices to trade with other VAT liable businesses, it is being nice to your fellow users.

Note that right now, PayCoupons only enables trading between users who signed up in the same country. So you usually don't have to care about VAT rules for international trade. (If you have to, here is a tip: international trade in services is VAT zero-rated almost always, except that of digital services imported into the European Union, over certain thresholds.)

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