The amount paid by your members is the gross amount, meaning it includes all charges and value-added tax (VAT). The amount of VAT depends on the country in which each member lives. For those living in Germany, the VAT rate is 19% (as of April 2017). In Austria, the VAT rate is 20%.
Steady takes care of handling the VAT that must be paid from each member's contribution. You don't have to worry about the complications of figuring out different VAT rates in different countries. The money you receive from Steady is based on the net amount.
Soon a reduced VAT will apply to digital publications. The introduction will proceed at different speeds in the various EU states. In Germany the change is expected to take place in January 2020. Read more on our blog.
Each month Steady will send you a detailed statement and will transfer money to your account. The transferred amount will contain your net revenue (all transaction costs deducted), and - for publishers in Germany - the applicable VAT. The VAT on your net revenue will depend on your individual VAT status, either 0%, 7% or 19%. You will need to declare this VAT to the Finanzamt (tax department), just as you must declare income.
For publishers outside of Germany, the "Reverse Charges Mechanism" generally applies. This means that no VAT is added to your net revenue from Steady.
If you have further questions about your personal VAT status, we recommend contacting a taxation adviser. Steady is not able to give taxation advice.