Can a tax-exempt business use a card terminal?

Yes, a tax-exempt business can use a card terminal.

Tax-exempt businesses, also known as tax-exempt entities, are generally exempt from paying Value Added Tax (VAT) on their supplies. However, they can still accept card payments through a card terminal.

When a tax-exempt business uses a card terminal, the terminal can be configured to reflect tax-exempt transactions. This means that VAT will not be displayed on the receipts issued for these transactions.

While tax-exempt businesses do not pay VAT on their sales, they are still required to file an annual income tax return. The total card sales will be included as revenue in their income tax filing.

It is important to ensure that the card terminal is correctly set up to process tax-exempt transactions to avoid any discrepancies. If you encounter issues, such as VAT appearing on receipts despite being a tax-exempt business, you should contact your card terminal provider for assistance.