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How to Handle VAT, Application Fees, and Payouts

Annual Sales Tax Return Report

Updated over 2 weeks ago

When you receive payments through Stripe, there are a few key parts to understand: the gross charge, VAT, application fees, and your net share. This guide explains how it works and how you should book it in your accounts.


1. Gross Revenue (excl. VAT)

The total amount paid by the customer, excluding VAT, is what you should book as revenue in your P&L.

  • VAT should be declared on this gross amount.


2. Application Fee (Brick Share + Stripe Fees)

Before you receive your payout, Stripe automatically deducts the application fee, which consists of:

  • Stripe’s transaction fees

  • Brick’s revenue share

Brick will invoice you for its part of the application fee. If you don’t provide a valid VIES-approved EU VAT number, VAT will be added to Brick’s invoice.

On your P&L, the full application fee should be booked as a cost.


3. Partner Net Share

After VAT and fees, you keep:

  • 70% of Net if you are an NP partner

  • 85% of Net if you are an MO partner

Here Net = Gross – VAT – Stripe transaction fees.
You also keep the VAT collected from customers.


4. Example Calculation

Customer charge: €100 (incl. €20 VAT at 20%)

  • Gross excl. VAT: €80 → booked as revenue

  • Stripe transaction fees: €3 (example)

  • Net: €100 – €20 – €3 = €77

  • Partner share:

    • NP: €53.90 (70% of €77)

    • MO: €65.45 (85% of €77)

  • VAT kept: €20


5. P&L Mapping

  • Revenue: Gross charge excl. VAT

  • Costs: Application fee (Stripe fees + Brick’s service fee)

  • Net Result: Your share of Net + VAT collected

application fee (+VAT if no valid EU VAT number is provided).


6. Supporting Documents

  • Application Fee (Upon request): Brick can create invoices as bookkeeping reference for its share of the application fee (+VAT if no valid EU VAT number is provided).

  • User Receipts: Go to the Rentals Table and Press "Download Receipts", receipts per transaction will be exported.

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