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  1. Last year a client signed up for a yearly subscription of my product. He paid 14,99 € with 19 % taxes included.
  2. This year the taxes are only 5 %.

How much does the client pay?

Why I asked: PayPal demands 14,99 € of my clients (I benefit of the tax reduction) and Stripe demands only 13,23 € (the client benefits of the tax reduction). EDIT: Both are gross prices with 5 % taxes included.

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    Well, what is written on the invoice? You cannot charge them 19% VAT but only pay 5% to the state, that would be fraud. But you can perhaps charge them 14,99€ incl 5% VAT, for example – but this would depend on how the contract is phrased (net or gross prices). Related question: if VAT had been raised to 25%, would you have eaten the cost or do you think you would have been allowed to raise the price? Most businesses voluntarily pass the reduced tax rate on to consumers, instead of increasing their net prices. – amon Oct 10 '20 at 15:26
  • Both the 14,99 € and the 13,23 € are gross prices. So if I understand you right then you can choose wether to keep the gross price or to lower it in case of tax reduction. – Sr. Schneider Oct 10 '20 at 15:56

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