If you are based in the Netherlands
Faire, as a marketplace, provides a platform service to brands, in exchange for which it charges a commission fee on marketplace orders.
Faire issues you an invoice (referred to as a commission invoice) which shows:
- The commission we charge per order
- Other fees charged by Faire for additional services, where applicable.
This invoice is available in each one of your orders, and can be used to reconcile your payout summary.
Faire is required to collect and remit VAT at 21% on:
- the commission it charges to brands based in the Netherlands
- Ship with Faire as a service provided to brands based in the Netherlands.
Where applicable, this tax will be detailed on your:
- Commission invoice that is issued by Faire
- Payout summary for each order
If you are based in another European country
If you are a brand based in Europe but outside the Netherlands (ex: EU, UK brands), Faire is not required to charge VAT on commission. Depending on where your brand is based and your VAT registration status, you may be required to self-account for VAT on the reverse-charge basis.
We recommend that you consult a tax advisor for more advice on your VAT compliance obligations.
How to check if you’re eligible to reclaim tax on services
- If you are registered for VAT in the Netherlands, you should be entitled to reclaim this VAT by including it in your periodic VAT return. To learn more, visit the website of the Dutch tax authorities. We recommend that you consult a tax advisor for more advice on this topic.
- If you are not registered for VAT in the Netherlands, you could consider your entitlement to get VAT registered, this would allow you to start reclaiming VAT on the expenses that you incur. To learn more, visit the website of the Dutch tax authorities. We recommend that you consult a tax advisor for more advice on this topic.