VAT on Robo-Advisor management fees
Depending on your country of residence, portfolio management services may be subject to 21% VAT set in Lithuania.
Where VAT is applicable, it will be included in the all-in fee of 0.75%, meaning this won’t further increase your management fee.
Here’s an example
An account with an average balance of €10,000 per month will have a management fee of €6.16 per month. Assuming there are 30 days in the month and 365 days in the year, the fee is as follows:
€10,000 * 0.0075 * (30 / 365) = €6.16.
Fee breakdown:
- The VAT included in the management fee of €6.16 would be €1.07
- The net amount is calculated as €6.16 / 121% = €5.09
- Therefore, the VAT amount totals €6.16 - €5.09 = €1.07
Revolut Securities Europe UAB charges €6.16, which consists of €1.07 VAT paid to local tax authorities and €5.09 paid to Revolut.