vat reference

terms

  • output VAT: VAT you collect from customers on your sales
  • input VAT: VAT you pay to suppliers on your purchases
  • net VAT: output VAT minus input VAT = what you owe the tax office
  • merchant of record: the entity responsible for collecting and remitting VAT (you for Stripe sales, Apple for App Store sales)
  • VAT return: quarterly form where you report output and input VAT
  • input tax credit: reducing your VAT bill by subtracting input VAT from output VAT
  • 13th Directive refund: standalone process for non-EU businesses to reclaim input VAT when you don't file VAT returns

money flows

you sell via Stripe

CUSTOMER         STRIPE          YOU              TAX OFFICE
   |                |              |                   |
   |-- €12 -------->|              |                   |
   |  (€10 + €2 VAT)|              |                   |
   |                |-- €12 ------>|                   |
   |                |              |                   |
   |                |              |-- send €2 VAT --->|

you receive the full €12. you owe the €2 VAT to the tax office. you report it on your quarterly return.

you sell via App Store

CUSTOMER         APPLE           YOU              TAX OFFICE
   |                |              |                   |
   |-- €12 -------->|              |                   |
   |  (€10 + €2 VAT)|              |                   |
   |                |-- €2 VAT ----------------------->|
   |                |              |                   |
   |                |-- €10 ------>|                   |
   |                |  (revenue)   |                   |

Apple keeps the €2 VAT and remits it. you get €10 revenue. you never touch the VAT. nothing to report.

you buy from EU supplier

YOU              HETZNER          TAX OFFICE
 |                  |                  |
 |-- €119 --------->|                  |
 |  (€100 + €19 VAT)|                  |
 |                  |-- €19 VAT ------>|

you paid €19 VAT. this is your input VAT. you can get it back.

credit mechanisms

two ways to get input VAT back. which one depends on whether you have EU sales via Stripe.

mechanism 1: offset on quarterly return

applies when: you have Stripe EU sales and are VAT-registered.

YOUR QUARTERLY RETURN:
  output VAT (collected from Stripe customers):  €200
- input VAT (paid on purchases):                 €190
= net VAT owed:                                  € 10  ← you pay this

if input exceeds output, the tax office refunds you:

  output VAT:  € 50
- input VAT:   €190
= net:        -€140  ← tax office pays you

mechanism 2: 13th Directive refund

applies when: you have no Stripe EU sales (Apple-only or no EU sales at all).

you submit invoices directly to the tax office: "I paid €190 VAT on these purchases, refund me." they review and pay you back. slower, more paperwork, same money.

quick decision

  • have Stripe EU sales → mechanism 1 (offset on return)
  • no Stripe EU sales → mechanism 2 (standalone refund claim)
  • either way: you get the same money back
Version 3 · Created Feb 16, 2026 · Modified Jul 20, 2026
chatgpt claude