How SIMEZU Handles VAT & Taxes

This page explains how SIMEZU handles value-added tax (VAT) and taxes for payments, in plain language for end users and sellers. It does not cover technical implementation or specific rates.

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Why VAT matters for your payments

When you sell digital services or goods to customers in the European Union (EU), VAT often applies. Who pays it, how much, and how it is reported depends on where your customer is based and whether they are a business or a consumer. SIMEZU helps you stay consistent and transparent by applying clear rules at the time of each payment and keeping a record of how VAT was treated.

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What SIMEZU does for you

At the time of payment

SIMEZU determines whether VAT applies to the transaction based on the buyer’s country and whether they are a business or a consumer.
For EU consumers, VAT is typically added to the price and collected; the amount you receive reflects this.
For EU businesses that provide a valid VAT number, the transaction may be treated as reverse charge: VAT is not added to the price, and the business customer accounts for VAT in their own country. SIMEZU records that this rule was applied.
For customers outside the EU, VAT usually does not apply to the transaction (outside EU scope). SIMEZU records this so it is clear no EU VAT was charged.

After the payment

Each payment keeps a clear record of how VAT was handled (e.g. VAT applied, reverse charge, or outside EU scope). This supports accurate invoicing and reporting.
Invoices generated from SIMEZU reflect the VAT treatment that was applied at the time of the transaction, so sellers and buyers see a consistent story.

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Key concepts (no jargon)

VAT

A tax on goods and services in the EU. Rates and rules differ by country. SIMEZU uses the applicable rules at the time of payment; we do not publish or guarantee specific rates here.

Reverse charge

For qualifying business-to-business (B2B) sales within the EU, VAT is not added to the price. Instead, the buyer’s country treats the supply as subject to VAT there. SIMEZU records when reverse charge was applied so your invoices and records are correct.

Outside EU scope

Sales to customers outside the EU are generally not subject to EU VAT. SIMEZU records these as “outside EU scope” so it is clear that no EU VAT was charged.

Your billing country

The country you use for billing (e.g. where your business is established) can matter for which rules apply. SIMEZU uses the billing information provided at payment time to apply the right treatment.

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Invoices and records

Invoices generated through SIMEZU show the VAT treatment that was applied to the underlying payment (e.g. VAT included, reverse charge, or outside EU scope).
When reverse charge applies, the invoice will indicate that clearly so both you and your customer have a correct record.
All of this is derived from the VAT treatment recorded at the time of the transaction, so your records stay consistent and auditable.

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EU reporting (OSS) — high level

If you sell digital services to consumers in multiple EU countries, you may have to report and pay VAT in each country where your customers are located. Many businesses use the EU One-Stop Shop (OSS) scheme to report and pay in one place instead of registering in every country.

SIMEZU can provide previews and summaries of transaction data (e.g. by country and period) that may help you prepare your OSS or other VAT reporting.
Submitting OSS returns and paying VAT to tax authorities remains your responsibility. SIMEZU does not submit returns or pay tax on your behalf; we help you see what happened in your transactions so you can report correctly.

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Refunds

If a payment is refunded, the VAT treatment follows the original transaction. The refund is recorded in a way that is consistent with the original sale (e.g. same VAT treatment and clear linkage to the original payment). This helps keep your books and any reporting aligned.

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Summary

SIMEZU applies clear, consistent VAT rules at payment time and keeps a record of that treatment.
You get transparency on whether VAT was applied, reverse charge was used, or the sale was outside EU scope.
Invoices and internal summaries are based on this recorded treatment.
OSS or other tax reporting and submission remain your responsibility; SIMEZU supports you with visibility and consistency, not with filing or paying tax for you.

For technical or integration details, see the rest of the SIMEZU documentation. For specific rates or legal advice, consult your tax authority or advisor.