Taxes and invoices

Sellers are solely responsible for complying with their local/state VAT/TAX regulations for issuing invoices to buyers for all transactions conducted on SWAPD. If you are unsure as to whether you have to issue a VAT/TAX invoice to a buyer, we suggest that you contact your tax advisor. SWAPD cannot assist you with legal or tax advice due to liability issues. SWAPD is a certified escrow service under the following PKD; 66.19.Z. Our company can only issue taxable invoices for services we have rendered and not the full amount paid.

Frequently asked questions

How are transactions conducted on SWAPD?

All sales happen via our checkout tickets where SWAPD agents, along with the buyer and seller, meet in order to conduct the transaction. Once a deal is reached, we bill the buyer for the full amount and hold the funds in escrow until the transaction is complete. When all three parties agree that the checkout ticket terms were upheld, we release the payment to the seller with the following deductions:

  1. SWAPD fee. The transaction fee varies and depends on things such as item/service type, transaction amount, and membership status (1-9%).
  2. Money transfer fees. These fees are related to the transfer of funds and the associated fees various banks charge to move the money.

After everything is set, we issue the buyer a taxable invoice for our services that only includes our fee (upon request). However, if the buyer wishes to receive an invoice for the full amount, he needs to ask the seller to supply a receipt for the rest of the amount. We recommend asking sellers prior to starting checkout tickets if they’re able to issue taxable invoices, as SWAPD will only issue invoices for our fee. Upon request, SWAPD agents can provide transaction summaries to buyers/sellers. Please note, transaction summaries are not valid taxable invoices, they’re only issued for record-keeping.

How do I know if I can issue a VAT/TAX invoice?

SWAPD sellers have to comply with all applicable legal requirements. You should consult your tax advisor to verify in which situations you are legally required to issue a taxable invoice.

What are the legal requirements for invoicing?

Taxable persons doing business in the EU are subject to a single set of EU-wide invoicing rules (Articles 217-240 of the VAT Directive). Under these rules, every taxable person should issue an invoice (either by themselves or through a third party issuing it on their behalf) in most business-to-business (B2B) supplies and certain business-to-consumer (B2C) transactions. In addition, there may also be specific national rules on transactions requiring an invoice. For the exact requirements applicable to you, contact your tax advisor.

How do I upload an invoice for the buyer?

You can either upload it inside the checkout ticket or PM the buyer directly. If the buyer is asking for an invoice, please make sure to ask a SWAPD agent for a transaction summary.

What information should be present on an invoice?

Based on the EU VAT Directive, invoices and credit notes must contain certain mandatory information, and certain country-specific details might need to be included as well. In general, sellers should include:

  1. Buyer/seller name.
  2. Buyer/seller address and contact info.
  3. VAT/TAX/EIN numbers (if applicable).
  4. Transaction ticket number (checkout ticket number).
  5. Date and amount.

Consult your tax advisor for further guidance.

How do I know how much tax should I add? Shouldn’t the buyer have a say in this?

Taxes, customs, and any other fees are typically the responsibility of the seller, but the seller is free to negotiate any additional fees as part of the purchase price, prior to starting the checkout ticket.