How does payment traffic work in Pro Light? 💰
Payment transactions in Pro Light are made via a sales invoice to Truster's customer reserve account, from which we deduct the service fee, VAT, and any withholding tax, YEL contributions and garnishment fees.
Payment transactions work as follows:
1. Sales invoice
You send the customer an invoice for the work done or products delivered. In this example, the invoice amounts are as follows:
1 000 € (tax-free amount)
+ 25,5 % VAT (value added tax)
=1 255 €
Why is VAT added?
VAT is a tax levied on the consumer and paid by Truster to the Tax Administration. VAT is not kept by the entrepreneur, but is paid to the State as such.
2. The customer pays the invoice → the money is transferred to the customer reserve account
When the customer pays the invoice, the full amount of €1 255 is first transferred to the customer reserve account. This is a suspense account where the money accumulates before Truster pays it to you.
Why doesn't the money go straight to the entrepreneur?
Truster Pro Light takes care of the payments and taxes for you. You do not have to worry about paying VAT and withholding tax separately.
3. Deductions on the customer's account
Before the money is transferred to the entrepreneur, the service deducts certain fees from the amount:
-VAT (-255 €)
This is the share that goes to the Tax Administration. As the customer has already paid the VAT as part of the invoice, Truster ensures that it is passed on.
-Deductible (-100 €)
Withholding tax is a tax levied in advance on the income received by the entrepreneur. The tax rate may vary, but in this example it is 10% of the net invoice (€1 000).
This is deducted so that the entrepreneur does not have to pay it later when the tax decision is issued.
-service fee (-39,90 €)
The Truster Pro Light service takes 3.99%* of the net amount of the invoice (€1 000). *The service fee may vary depending on the service contract.
-Possible YEL contribution (not visible in this example)
If the entrepreneur is YEL-insured and has chosen Truster to handle the payment, the YEL contribution can be automatically deducted before the funds are transferred to the entrepreneur.
4. Final transfer to the entrepreneur
Once all fees and taxes have been deducted, the remaining amount of €860.10 is transferred to the entrepreneur's personal account.