Switching from the old VAT feature? If you previously enabled VAT and adjusted your prices, read VAT update: moving to inclusive pricing (VAT 2.0) first — you may need to update your prices before the guidance below applies cleanly.
Your prices already include VAT
In PadelOS you set prices inclusive of VAT — the price the customer sees is the final price, tax included. You don't add VAT on top; it's already inside the price.
For example, a €100 court at a 9% VAT rate already contains €8.26 of VAT. Your net income (your part) is €91.74; the €8.26 is the tax portion. You just set the €100 — PadelOS works out the rest.
Different items can carry different VAT rates (a court and a drink may differ), so a single receipt can show more than one rate. Each line shows its own VAT, with a short VAT-by-rate summary at the bottom for your accountant.
VAT is charged when something is bought — not when a wallet is topped up
When a customer adds money to their wallet, they haven't bought anything yet — it's just money on account. And because that balance could later be spent on things taxed at different rates (a court, a drink, an event), there's no way to know yet which VAT would apply. So no VAT is charged at top-up; it's charged later, when they spend it on a booking. That's why a €100 top-up buys a €100 court exactly: the VAT is inside the €100 court, charged at the booking — never added at top-up.
And the way a customer pays — card, wallet, or a mix — never changes the VAT. The wallet is simply money they already paid, stored for later.
Examples: the same €100 court, paid different ways
All examples use a €100 court at 9% VAT.
How the booking happens | Taxable price | VAT | What the customer pays |
A. Paid in full by card | €100 | €8.26 | €100 by card |
B. Paid in full from wallet | €100 | €8.26 | €100 from wallet |
C. Split: part wallet, part card | €100 | €8.26 | €50 wallet + €50 card |
D. With a 50%-off discount code | €50 | €4.13 | €50 by card |
E. Paid with free credit you gave | €0 received | €0 | €100 of gifted credit |
What the examples show:
A, B and C all have the same VAT (€8.26). Whether the court is paid by card, from the wallet, or split between the two, VAT is on the full €100. Splitting the bill or paying from the wallet is just how the money is collected — it doesn't change the price or the tax.
D is different: a discount lowers the price, so it lowers the VAT. A 50%-off code makes it a €50 sale, and VAT is €4.13. Compare C and D — the customer pays €50 by card in both, but C has €8.26 of VAT and D has €4.13. That's because in C the other €50 was real money the customer had already paid (into their wallet), while in D you simply charged €50 less.
E carries no VAT, because you received nothing. Credit you gift a customer isn't income, so when they spend it there's no VAT on the free part — it works like a discount. (If half were free and half real money — say €40 free plus €60 paid — VAT would apply to the €60, about €4.95.)
The rule underneath all of this: VAT follows the money you actually receive for the booking. Money received (card, wallet, a benefit card) is taxed on the full price; money you give up (a discount, or free credit) lowers the taxable amount.
The kinds of wallet credit
PadelOS records how each bit of wallet credit got there, because it affects the tax:
Customer top-up — the customer adds their own money by card or bank. No VAT at top-up; VAT when they spend it.
Admin credit — you add credit for free (goodwill, compensation, a bonus). No payment is received, so when it's spent the free part carries no VAT, like a discount. If you do this often, check your country's gift rules with your accountant.
Refund credit — money returned to a wallet after a cancellation. Not taxed when created; the original booking's VAT is corrected separately (see below), and the credit is taxed again only when it's re-spent.
A further type can be added for third-party-funded arrangements — for example MultiSport, an employer benefit card common in Eastern Europe, where the customer loads their wallet and the scheme reimburses you. Other regions have their own equivalents. The VAT treatment is the same as any top-up (nothing at top-up, VAT at the booking); you settle with the third party separately. When you later invoice the scheme for what was used, that's simply collecting money for VAT you already accounted for at the booking — not a second tax charge, so there's no double counting. PadelOS can track these credits as their own type so you can pull a clean total for the settlement. Talk to us and your accountant about the setup.
What you report — your responsibilities
PadelOS calculates and records the VAT, but you are the seller, so reporting and paying it is your responsibility.
You're the seller of record. Your club's name and VAT number are on the receipts, and the VAT goes on your VAT return. PadelOS is the software; the tax relationship is between your club and your customers.
Confirm your rates locally. PadelOS applies the rates set up for your club and items. Rates and rules vary by country and change over time — confirm them with a local accountant before launch and whenever they change. (Some countries also tax members and non-members differently; PadelOS can handle that — ask us.)
When VAT is due: at the booking or purchase, not at top-up. Each booking belongs in the VAT period of its booking date.
Refunds and cancellations don't delete a booking — they create a correction that reverses the VAT you originally reported. This correction usually applies in the period you issue it, not the original booking's period; your accountant handles that timing. Money returned as wallet credit isn't taxed again until it's spent.
Not VAT-registered? If you're below your country's threshold and don't charge VAT, tell us and we'll show prices without a VAT line.
PadelOS gives you the numbers — VAT per transaction, grouped by rate, ready for your return. Your accountant files it. Because tax rules differ everywhere, treat this as general guidance; your local tax advisor has the final word.
Questions about how a specific transaction was taxed? Contact support and we'll walk you through it.