Should the fee for credit card payment be booked as an additional charge on the net price as income?
April 12, 2013 | 25,00 EUR | answered by Oliver Burchardt
My client in Berlin (hotel and accommodation facility) requests a fee for credit card payments from customers when paying the bill at check-out. A flat fee of 2-4% is added to the net invoice amount. Must the revenue from the fee be separately stated on the invoice and must the revenue from the fee be separately booked? If yes, does VAT apply? Which revenue account do you suggest?
Dear inquirer,
Thank you for your inquiry, which I am happy to answer as part of an initial consultation.
From a VAT perspective, I believe a separate disclosure on the invoice is necessary, as an additional service is being provided here (namely the granting of the possibility of credit card payment).
From a VAT perspective, the credit card fee is considered an ancillary service that shares the fate of the main service. The applicable VAT rate then depends on the main service provided.
If only accommodation services are provided, the reduced rate should be applied to the entire amount. If other services are also provided, the fee must be divided and VAT should be calculated at 7% and 19%.
The basis for division should be the proportional value of the services to each other.
Best regards,
Oliver Burchardt
Tax advisor
... Are you also interested in this question? 
