Última actualización: 22 sept 2025, 11:13 a.m.
Toast’s provision of payment processing services in the U.K. and Ireland is now subject to value-added tax (VAT). In order for Toast to be compliant with this tax requirement, Toast is required to withhold the VAT.
Read ahead for answers to questions you may have about this.
In this Article:
No; starting 1st August 2024, VAT will automatically be charged at the same time your card processing fees are deducted, and will be reflected in your monthly card processing and deposit reports.
As part of Toast's periodic VAT compliance review in the U.K. and Ireland, due to frequent updates to tax legislation and further clarifications from tax authorities, it was determined that provision of card processing services is subject to Value-Added Tax (VAT).
Starting 1st August 2024, Toast's card processing fees, including transaction fees, will be subject to VAT at the standard rate currently of 20% for customers in the UK and 23% for customers in Ireland. This means that VAT will be applied to these fees.
Toast's VAT liabilities determination is subject to change. As part of our recent periodic tax compliance review, it was determined that VAT should apply to Toast card processing fees. As part of our compliance process, starting on 1st August 2024, we will be able to implement this change.
Toast will apply VAT on its card processing fees, alongside other taxable transactions. If you have any questions in relation to your accounting practices please contact a tax advisor or accountant for support.
Toast is committed to ensuring compliance with the updated regulations is as streamlined as possible. We have been working on the systems and process changes required to achieve this and Toast will be ready to go live with these changes on 1st August 2024.