VAT Handling

Platform Fees (percentage)

Platform fee percentages are inclusive of VAT.
Marketplaces pay this fee, and the VAT, to the platform (Redbox).
For example, if your Platform fee is 5%, and the order subtotal is £20, the net platform fee is £0.83 and the gross platform fee is £1.00.

Marketplace Fees (percentage)

The marketplace fee is exclusive of VAT.
Businesses pay this fee, and the VAT, to the Marketplace.
VAT will only be added to your Marketplace fee if a VAT number is added to your Partner settings in Redbox.
The payouts report shows marketplace fees with VAT if the Partner is VAT registered.
The transactions report shows NET and GROSS marketplace fees. If these fees are the same, your Partner is not VAT registered on Redbox.
For example, if your Marketplace fee is 10%, and the order subtotal is £20, the net marketplace fee is £2.00 and the gross marketplace fee (for VAT registered marketplaces) is £2.20.

Marketplace Charge (fixed cost)

The marketplace Charge is inclusive of VAT, if your Partner is VAT registered.
Customers pay this fee and any VAT to the Marketplace.
For example, if your Marketplace Charge is £0.50, the net Marketplace Charge is £0.42 and the gross Marketplace Charge is £0.50 if the Partner is VAT registered.
- If the Partner is not VAT registered the Marketplace charge does not include VAT, and your net and gross Marketplace fee are both £0.50.
If you make a marketplace charge, this is deducted from the business payout, but the VAT has already been paid by the customer.

Business VAT

Menu item prices must include VAT if applicable. VAT is not added to menu item prices.
Customers pay this VAT to the business.
A VAT number can be recorded against a business.
If a VAT number is recorded against a business, menu items are assumed to be VAT exempt unless the VAT inclusive box on the menu item is ticked.
Cold food to take away is normally VAT exempt, hot food to take away and drinks usually include VAT if the business is VAT registered.
Any VAT applicable to menu items and paid by the customer, is shown on the order summary.

Please note, VAT on order items is paid by the Customer to the business, but VAT on the Marketplace charge is paid by the customer to the Marketplace.