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How does the ResQ service work from a VAT perspective?

Instructions for our partners

Updated over a year ago

🇫🇮

This article covers value-added tax (VAT) and related practices in Finland.

Please note that the standard VAT rate in Finland has increased from 24% to 25.5% as of September 1, 2024.

This change does not require any action from our sellers, as the VAT will be automatically updated for all applicable products.

What is the VAT rate for ResQ service?

ResQ Club Oy operates under Finland's standard VAT rate, where services and goods are subject to a 25.5 % value-added tax. This means that we pay 25.5 % VAT on the commission earned from sales, regardless of the type of products sold.

The VAT rate applied by your company depends on the type of surplus products you sell through ResQ. You can find the category-specific VAT rates in the table below.

Product category

VAT rate

Non-edible products (e.g. household products, cosmetics...)

25.5 %

Foods, restaurant and meal services, pet food, vitamins and dietary supplements, edible plants and flowers (e.g., herbs or berry hanging baskets).

14 %

You can calculate your VAT values with this VAT calculator.

💡 Example: VAT on a purchased portion from ResQ

  1. Lisa buys one surplus food offer from Pasta & Pizza using ResQ for 10€.




  2. The receipt sent to Lisa shows that the applicable VAT on Pasta & Pizza's offer is subject to a reduced 14% VAT rate in Finland.




  3. Lisa pays 10€ for the offer, which includes the 14% VAT. In other words, the VAT-free sales of the Pasta & Pizza restaurant is here 8.77 € (10 € / (100% + 14%)).




  4. Pasta & Pizza pays ResQ Club Oy a commission for using our service. This 25% commission is deducted from the VAT-free sales, which in this case is 2.19 € (8.77 € * 25%).




  5. The standard VAT rate of 25.5 % is added to the ResQ commission (2.19 €). Therefore, Lisa's purchase brings ResQ Club Oy a VAT included sale of 2.75 € (2.19 € * (100% + 25.5%)).



Is the VAT deductible?


The short answer: yes. Declare your tax return in the MyTax service.


How do I avoid double taxation?


Double taxation is avoided with the VAT deduction mentioned above.

In summary: you avoid double taxation by deducting the ResQ commission tax (25,5 %) amount in your own tax declaration!

Example can be found below! ⤵️

  1. Lisa pays a 1.23 € VAT (14%) on the 10€ offer she bought, which Pasta & Pizza pays to the Finnish tax admin.

  2. Pasta & Pizza pays ResQ Club Oy a commission, of which 25.5 % is the VAT share, i.e. 0.56 €. ResQ Club Oy pays this VAT to the Finnish tax admin, so in order to avoid double taxation, Pasta & Pizza deducts this 25.5 % VAT in its own tax return.

    1. In short: Deduct the amount (0.56 € in the example) of the ResQ commission’s tax (25,5 %) in your own tax return, and you’ll avoid double taxation!


How is the VAT included in our payout reports? Will the VAT be separated there?

We will send you a payout report at the beginning of the following month, detailing the VAT amounts. A detailed breakdown can also be found in your profile statistics.

Here's an example of the payout report for Pasta & Pizza restaurant for the previously mentioned 10 € meal.


The report separates:

  1. Total sales for the previous month (10 €) and tax-free sales (8.77 €)

  2. Venue's VAT share of sales (1.23 €)

  3. ResQ's tax-free commission (2.19 €) and VAT amount (0.56 €) separately

  4. As a result, the amount to be remitted to Pasta & Pizza for Lisa's purchase is €7.25, of which €0.56 is deductible.

💡 Example: Payout Report

Here is an example payout report which shows the VAT shares clearer.

Make sure to also check out the guidelines above to understand what the report includes and how it breaks down!

❗️ Please note that in the example report below, the general VAT rate for Finland is still shown as 24%. The general VAT rate has increased to 25.5% as of September 1, 2024.



What do we do if we are a non-profit foundation engaged in value-added tax-exempt sales?

In principle, all companies are subject to the VAT, but there are exceptions. If you belong to an exception, please let us know about this by message at info@resq-club.com or by calling us at +358 9 42455293, so our sales team can sort this out for you.

Normally the offer price includes a 14% VAT, which needs to be modified in the payout report. In this case, the payout report will include a 0% VAT.

The customer's receipt also includes a 14% VAT, which means that a customized receipt is also needed, so that we sell portions with the correct VAT information to our customers.


ResQ partners’ VAT rates

Our service operates in many countries. For ResQ partners, the VAT rate and rules of the country where the venue is located and sells products apply.

  • Finland: Depending on the product category, partners pay either 14% or 25.5%* VAT.

    • ResQ Club Oy's commission VAT rate is 25.5 %

  • Sweden: Depending on the product category, partners pay either 12% or 25% VAT.

    • ResQ Club Ab's commission VAT rate is 25%.

  • Germany: Partners pay 7% VAT.

    • ResQ Club Oy's commission VAT rate is 0%.

  • Estonia: Partners pay 22 % VAT.

    • ResQ Club Oy's commission VAT rate is 0%.


Sources

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