As you may be aware, as of 1st January 2015 the rate of VAT charged must be based on the customer's location at the time of purchase for all customers within the EU (European Union).

 

How will this affect me?

 

As a Partner of Hubpeople, the VAT amount calculated for customer payments that we have to pay to the appropriate authority will vary depending on the prevailing VAT rate of the customer's location. Therefore the partner share for a transaction may vary depending on the tax rate that will be deducted from the gross amount prior to the revenue share being calculated.

 

Any payments from customers outside of the EU VAT catchment area will not be affected, and not incur any VAT charge.

 

Will VAT applied to partner payments change?

 

No, For partners within the EU that are VAT registered, we will continue to add 20% VAT as per the current Isle of Man business to business regulations. Partners outside of the EU reverse VAT rules apply and VAT will not be applied. Please note we are obliged to check partner EU VAT status and will be conducting checks to ensure compliance in the coming weeks.

 

If you have any questions regarding the above, please do not hesitate to contact us for further information.