What costs are associated with gifts?
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Modified on: Wed, 11 Dec, 2024 at 11:45 AM
Gifts (gifted vouchers) are vouchers that are bought alongside the gifting service. The price a customer pays for a gift is the voucher price + the gifting price. Here is an overview of the potential increased costs associated for you, which we believe are minimal. Please note, the following are only estimates based on a gifting price of 99p.
Transaction fee: 1.5p higher.
Stripe currently charges 1.5% + 20p per transaction (check here for up-do-date pricing).
The transaction fee will be ~1.5p higher for a gift than for a voucher.
Gifting fee = The gifting price paid by the customer.
Our gifting fee is equal to the gifting price, which has been paid to you by the customer in addition to the voucher price. We do not charge any commission on voucher purchases themselves, and so you still keep the payment for the voucher.
Stripe's terminology for the gifting fee is an "application fee".
VAT on gifting: This treatment depends whether you are VAT registered or not.
You charge customers for the gifting service, not Steppr (we take our gifting fee from you after the customer payment to you).
Steppr is not currently VAT registered - we will let you know if this changes.
If you are VAT registered, you may be liable for VAT on the gifting payments from customers (as well as on the voucher payments).
VAT on gifting may be of the order 16.5p per transaction (= 99p x (1-1/1.2)) although please do not rely on this calculation.
We cannot offer tax or accounting advice about this. Please seek an accountant's assistance if you are unsure.
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