Thank you so much for this information. I have literally searched the web for an hour for this piece of information. There were debates over whether Paypal is classed as a financial institution in which case the fees would be VAT exempt. It seems to me then HMRC classes it as a service so then the Reverse Charge Expense (20%) applies. We also had a VAT inspection and were also told some of our filings were in the wrong box for services outside of the EU. This clarified the issue for me. Thanks
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