Dealing with VAT will be a heck of a confusing accounting issue for obvious reasons. And because transparency is front and centre on this platform, it needs clarification.
As a registered business, KindBunch is legally obliged to cover VAT on all payments received where applicable. VAT is not charged on businesses from outside the EU, but it is on businesses from within the EU.
When a business owner pays us to list their business in our directory, or to place an ad in our community, we charge VAT over our fees.
But, the payments we receive are not officially “profit” because they are donated to animal rescues. So, VAT rebates should kick in. And they will, but only when we transfer donations to registered charities. The fact, however, is that we work with a lot of home-based, private rescues. I welcome private rescues. I have deep, deep respect for anyone who opens their home to homeless animals.
This will create the odd conundrum for my accountant. But, I will deal with it. My job is to keep it simple for home-based, private rescues to continue to save homeless animals, and so this is what I will do.
The reality is that we will have to wait for the end of each accounting period throughout the year to truly calculate how much VAT we are actually liable to pay. KindBunch will absorb this.
But, for transparency’s sake, this will be published in our ledger too. Any rebates will be logged in the Admin Wallet in our ledger to cover admin costs. This will guarantee accountability from admin.
If you have any questions, reach out via the Support Desk.
