Key takeaways
- VAT on Stripe's fees and VAT on your own sales are separate questions with separate rules.
- Stripe bills most European accounts from Ireland without VAT, so VAT-registered businesses may need to reverse charge the fees.
- Stripe Tax calculates and collects VAT only where you have added a registration. It does not validate customer VAT numbers.
- You remain responsible for filing and paying. Stripe files in limited cases, and partners such as Taxually cover other countries.
- Non-UK sellers have no UK registration threshold, and non-EU sellers have no EUR 10,000 OSS threshold.
In short: Stripe VAT has two parts. Stripe's own fees are usually billed to European accounts from Ireland without VAT, so VAT-registered businesses may need to self-account under the reverse charge. VAT on your sales is your responsibility. Stripe Tax calculates and collects it, but you still register, file and pay, yourself or through a partner.
Updated October 2026. This guide reflects Stripe's support and documentation pages, HMRC guidance and European Commission OSS guidance as checked on 27 October 2026.
Is there VAT on Stripe fees?
For most European account holders, no VAT is added to Stripe fees. Stripe says it supplies European account holders from its establishment in Ireland and does not charge VAT on fees, except for accounts in Ireland, Norway, Switzerland or Liechtenstein, and the United Arab Emirates (Stripe Support).
No VAT on the invoice does not mean no VAT at all. Stripe's own page says that businesses that may need to self-account ("reverse charge") for local VAT should check with a tax advisor or accountant (Stripe Support). Stripe issues tax invoices for its fees and the related taxes. You can find them in the Documents section of your Stripe Dashboard, and they are issued by the 10th of the following month once your business details are complete (Stripe Support).
Are Stripe fees subject to the reverse charge?
Often, yes, if you are a VAT-registered business and Stripe bills you from another country without charging local VAT. In that case you account for the VAT yourself on your VAT return.
EU businesses
Under Article 196 of the EU VAT Directive, the customer is liable for VAT on business services when the supplier is not established in the customer's EU country (European Commission). A German or French business billed by Stripe from Ireland without VAT would normally report German or French VAT on the fees through the reverse charge. It can usually deduct that same amount as input VAT if it makes taxable sales. An Irish account is in a different position, because Stripe charges VAT on fees in Ireland.
UK businesses
Stripe's global fee page does not name the United Kingdom. So check your Stripe tax invoice to see which entity bills you and whether UK VAT is shown. If an overseas supplier bills you without UK VAT, HMRC's rule is clear. A UK business that receives business services from an overseas supplier applies the reverse charge. It records output tax in box 1 and the matching input tax in box 4, and it enters the full value of the service in boxes 6 and 7 (HMRC VAT Notice 741A). For a fully taxable business, the net effect is usually zero. HMRC also says that if you are not yet registered, reverse-charge services count toward your registration threshold (HMRC VAT Notice 741A). For more detail, see our guide to reverse charge VAT.
Does Stripe collect and pay VAT for me?
Stripe Tax can calculate and collect VAT on your sales, but it does not make Stripe liable for that VAT. You must register, file and pay the VAT you collect. Stripe describes the cycle in four steps. You work out where you must collect tax, you register, Stripe Tax calculates and collects, and you file and remit, either yourself or with Stripe and its partners (Stripe Docs).
Three details matter in practice:
- Registration comes first. Stripe Tax only collects tax where you have added a registration in the Locations tab of the Dashboard. Stripe says to register with a tax authority before you begin collecting there (Stripe Docs).
- Monitoring is an alert, not a filing. Stripe Tax tracks your sales against local registration thresholds and alerts you when you might have obligations (Stripe Docs).
- B2B reverse charge depends on tax IDs. Stripe Tax uses customer tax ID numbers to decide whether a sale is B2B. It does not check whether the number exists or is valid (Stripe Docs). You should validate VAT numbers yourself before you zero-rate a sale under the reverse charge.
Does Stripe Tax file my VAT returns?
Only in limited cases. Stripe says you must file and remit the tax you collect in every location where you are registered. Its own automated filing covers the US, plus selected registrations in Ireland (non-Union OSS) and Canada (simplified GST/HST) (Stripe Docs).
For other countries, you have three routes. You can self-file using Stripe Tax reports, use automated filing where available, or use a filing partner. Stripe lists filing partners, including Taxually and Hands-off Sales Tax, and its Tax Complete plan includes filing credits you can use toward TaxJar and Taxually (Stripe Docs). If you file the EU One Stop Shop (OSS) return yourself, Stripe Tax's itemized and summarized exports can help. Stripe notes that the itemized export also includes domestic sales, which you must remove before preparing an OSS return (Stripe Docs).
When do I need to register for VAT when selling through Stripe?
It depends on where your business is established and who your customers are. Using Stripe does not change the thresholds.
Selling to UK customers
A UK-established business must register when taxable turnover for the last 12 months goes over £90,000, or when it expects to pass £90,000 in the next 30 days. A business based outside the UK must register regardless of turnover if it supplies goods or services to the UK, or expects to within 30 days (GOV.UK). Stripe's UK page adds that a non-UK seller of digital services only to UK businesses does not need to register, because those sales fall under the reverse charge (Stripe Docs). See Becoming UK VAT registered for the process.
Selling to EU consumers
Businesses established outside the EU, with no fixed establishment there, can use the non-Union OSS scheme to declare B2C services supplied in any EU country through one registration. EU-established businesses use the Union scheme. The EUR 10,000 annual threshold applies only to cross-border B2C telecommunications, broadcasting and electronic services and intra-EU distance sales of goods by EU-established sellers. OSS returns are filed quarterly (European Commission OSS). Stripe Tax supports both Union OSS (oss_union) and non-Union OSS (oss_non_union) registration types, and notes that UK businesses can use the non-Union scheme for EU sales (Stripe Docs). Our EU OSS and IOSS guide covers the details.
Who accounts for VAT in common Stripe scenarios?
The table below separates VAT on Stripe's fees from VAT on your own sales. Always confirm against your own invoices and registrations.
| Scenario | Who accounts for VAT | What you do |
|---|---|---|
| UK VAT-registered business paying Stripe fees | Depends on the billing entity on your Stripe tax invoice. If an overseas supplier bills without UK VAT, you do (reverse charge). | Download the tax invoice from Documents. If no UK VAT is charged, report it in boxes 1, 4, 6 and 7. |
| EU business (outside Ireland) paying Stripe fees | You, under the reverse charge. Stripe bills from Ireland without VAT. | Self-account for local VAT and deduct it as input VAT where allowed. |
| Irish business paying Stripe fees | Stripe charges VAT on the fees. | Reclaim the VAT as input tax where allowed. |
| Non-EU SaaS selling to EU consumers | You, from the first sale. No EUR 10,000 threshold applies. | Register for non-Union OSS, add it in Stripe Tax, and file quarterly OSS returns. |
| UK SaaS selling to UK consumers | You, once over £90,000 taxable turnover. | Register with HMRC, add the UK registration in Stripe Tax, and file UK VAT returns. |
| Non-UK SaaS selling to UK consumers | You, with no turnover threshold. | Register with HMRC within 30 days of the first UK sale. |
| B2B sale to a customer with a valid VAT ID in another country | Usually the customer (reverse charge). | Collect and validate the VAT number, and add it to the customer in Stripe. |
For the B2B and B2C logic behind this table, read B2C vs. B2B sales: how does VAT apply?
How do I set up VAT with Stripe?
Set up registrations first, then turn on collection, then plan filing. This order follows Stripe's own documentation.
- Map your obligations. List where your customers are, whether they are consumers or businesses, and where you are established. Check Stripe Tax threshold monitoring for alerts (Stripe Docs).
- Register. Register directly with each tax authority, or request a registration in the Dashboard. Outside the US, Stripe routes "Register for me" requests through a Taxually account (Stripe Docs).
- Add registrations to Stripe Tax. In Locations, click Add registration, choose "I've already registered", and set the start date (Stripe Docs).
- Set product tax codes and customer details. Stripe Tax uses your business address, registrations, product tax codes, customer location and customer status to set rates (Stripe Docs). Collect VAT numbers from business customers.
- Enable automatic tax. Turn it on for Checkout, Payment Links, Invoices or Subscriptions so tax is calculated on each sale (Stripe Docs).
- Choose a filing route. Self-file from Stripe Tax exports, use Stripe filing where it is available, or connect a filing partner (Stripe Docs).
- Handle VAT on fees. Download Stripe's monthly tax invoices and post any reverse charge on your own VAT return.
How does the Taxually Stripe app fit in?
The Taxually Stripe app connects to Stripe Tax, pulls sales amounts, customer locations and tax rates, then prepares and submits returns to tax authorities on your behalf (Taxually). Stripe performs the tax calculations. The app is for businesses that are already registered. For new registrations, Taxually completes the registration process for you (Taxually). You can read the original launch post, The Taxually Stripe app has landed.
Sources
- Stripe Support: Global taxation of Stripe fees
- Stripe Docs: How Stripe Tax works
- Stripe Docs: Register for sales tax, VAT, and GST
- Stripe Docs: File and remit
- Stripe Docs: Tax reporting
- Stripe Docs: Register outside the US with Taxually
- Stripe Docs: Collect tax in the United Kingdom
- GOV.UK: When to register for VAT
- HMRC: Place of supply of services (VAT Notice 741A)
- European Commission: The One Stop Shop
- European Commission: Persons liable for VAT
How Taxually handles this
The Taxually Stripe app connects to Stripe Tax and prepares and submits your VAT returns to tax authorities on your behalf, so you can handle filings from your Stripe Dashboard. For new VAT registrations and OSS or IOSS returns outside Stripe, CrossTax manages VAT registration and filing in the countries you sell into.
Related guides:
Frequently asked questions
Is there VAT on Stripe fees?
For most European accounts, Stripe supplies its services from Ireland and does not add VAT to fees. The exceptions Stripe lists are Ireland, Norway, Switzerland or Liechtenstein, and the United Arab Emirates. VAT-registered businesses may still need to self-account for local VAT under the reverse charge.
Are Stripe fees reverse charge VAT in the UK?
Check the billing entity and VAT shown on your Stripe tax invoice, because Stripe's global fee page does not name the UK. If an overseas supplier bills you without UK VAT, HMRC requires a UK VAT-registered business to apply the reverse charge: output tax in box 1, input tax in box 4, and the net value in boxes 6 and 7.
Does Stripe collect and pay VAT for me?
Stripe Tax calculates and collects VAT on your sales where you have added a registration. You remain responsible for registering and for filing and paying that VAT, either yourself or through Stripe's filing options and partners.
Does Stripe Tax file my VAT returns?
Stripe's own automated filing covers the US and selected registrations in Ireland (non-Union OSS) and Canada. For other countries, you self-file using Stripe Tax exports or use a filing partner such as Taxually or Hands-off Sales Tax.
When do I need to register for UK VAT when selling through Stripe?
UK-established businesses register when taxable turnover passes £90,000 in a rolling 12 months, or is expected to within 30 days. Businesses based outside the UK must register regardless of turnover when they supply goods or services to the UK. Non-UK sellers of digital services only to UK businesses generally do not need to register, because the reverse charge applies.
Do non-EU sellers get the EUR 10,000 OSS threshold?
No. The EUR 10,000 threshold only applies to EU-established sellers. A business established outside the EU that sells digital services to EU consumers owes VAT from the first sale and can use the non-Union OSS scheme, with quarterly returns.
