Now that you have started selling surplus food on ResQ, you might want to understand what using our service means to you from a VAT perspective. In this article, we review some frequently asked questions about the value-added tax (VAT).
What VAT does ResQ apply?
ResQ Club Oy is part of the standard VAT rate, where services and goods are subject to a standard 24 per cent (%) VAT. Your company's VAT rate is subject to a reduced tax rate of 14% in Finland. This includes food as well as restaurant and catering services. Therefore, ResQ pays 24% VAT on our own share of the sales, while you partners pay 14% VAT on your share of your sales.
The following example explains the VAT applied on a ResQ offer purchased by a customer:
Lisa buys one surplus food offer from Pasta & Pizza using ResQ for 10€.
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.
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%)).
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%).
The standard VAT rate of 24% is added to the ResQ commission (2.19 €). Therefore, Lisa's purchase brings ResQ Club Oy a VAT included sale of 2.72 € (2.19 € * (100% + 24%)).
You can also calculate your VAT values with this VAT calculator.
Is the VAT deductible? How do I avoid double taxation?
The short answer: yes. Your accountant surely knows that the VAT is deductible. Declare your tax return in the MyTax service. To answer this question, the same example case is continued further:
Lisa pays a 1.23 € VAT (14%) on the 10€ offer she bought, which Pasta & Pizza pays to the Finnish tax admin.
Pasta & Pizza pays ResQ Club Oy a commission, of which 24% is the VAT share, i.e. 0.53€. ResQ Club Oy pays this VAT to the Finnish tax admin, so in order to avoid double taxation, Pasta & Pizza deducts this 24% VAT in its own tax return.
In short: Deduct the amount (0.53€ in the example) of the ResQ commission’s tax (24%) 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?
Every 2nd day of the month, we send you a payout report with the exact VAT values separated. The same report can also be found in the stats page on your profile.
This is what Pasta & Pizza’s payout report would look like. It includes their total sales for the previous month (10 €), the VAT share of the sales, as well as lists the VAT-free ResQ commission and its VAT share separately.
In the end, the amount paid to Pasta & Pizza for Lisa's purchase is 7.28 €, out of which 0.53 € is deductible.
Here is an example payout report which shows the VAT shares clearer.
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 email@example.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
Finland: Our partners pay 14% VAT, of which the VAT on ResQ’s commission is 24%.
Sweden: Our partners pay 12% VAT, of which the VAT on ResQ’s commission is 25%.
Poland: Our partners pay 8% VAT, of which the VAT on ResQ’s commission is 23%.