PayPal transaction fees from EU VAT perspective

gorangers
Contributor
Contributor

Hello! From the perspective of EU VAT regulation, what status do the transaction fees have? Are they VAT exempt or VAT reverse charge?

I'm asking because I've considered them to be VAT exempt considering PayPal Europe operates under an EU banking license and the services seem to me as being a banking service, but have recently heard an opinion that they are supposed to be registered with the local authorities as being VAT reverse charge.

Please also provide some background for the answer, if possible. Thank you!

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