Is it still ok with MTD to record a single monthly sales invoices for all sales received via PayPal as described in this article?
Or do we now need to import all individual sales from PayPal/website csv into quickfile?
Hi @nick2,
Yes this is still ok, as long as you are reporting the VAT correctly and have the backup data
Thank you!
Is there any issue if these are currency transactions? For example to import USD transactions at the last day of the month?
What if we import it quarterly (as long as it fall within the same VAT/ accounting period), would that cause any issues by using a single exchange rate for the transactions in this period?
Hi, if your digital records are a spreadsheet downloaded from PayPal or the website, then you can enter the sales for a month at a time, as long as they are all at the same VAT rate and fall within the same VAT period. You must keep the spreadsheet as your digital VAT records. However, the entry into Quickfile should be a digital link, rather than a manual entry. This will be mandatory for VAT periods from 1 April 2021.
You can create a summary spreadsheet to import into QF, but the totals must not be manually input into the summary, they should be linked to the detail.
There should be no manual input from your digital records (i.e. spreadsheet) into QF. Manual input into QF is fine if QF itself is your digital record, e.g. where you are manually entering a purchase invoice from a supplier, for instance, or creating an invoice to send to a customer.
The VAT notice on MTD has more details: VAT Notice 700/22: Making Tax Digital for VAT - GOV.UK
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Thank you! Is it allowed to edit the downloaded spreadsheet before import into QF? I don’t think the monthly total data spreadsheet would fit the format for QF sales import without editing it.
Or do you mean that I should use the spreadsheet that covers all transactions, but only upload the totals into QF? If so, how could I do that? By copying over the totals to another spreadsheet and import this into QF?
The most challenging part is that half of these are 20% VAT while the rest is either zero rated or out of scope of VAT. So there is no way to import it correctly to QF without editing the data.
Maybe the best way is to make a custom export from our website that would indicate the VAT rate and amounts. In this case every single transactions would be imported as a sale.
I would use the spreadsheet that covers all transactions. You are required to keep records of every transaction, with date, amount, VAT etc. So use this spreadsheet as your digital record.
You are not allowed to edit the spreadsheet manually before uploading to QF, i.e. you can’t copy and paste values.
I would either add a new sheet to summarise for import, or create a new template.
The new import summary should be linked to the transactions sheet, though, not copied and pasted or manually input.
You can pick up the monthly total for each VAT rate - so import everything that is zero rated as one line and everything that is standard rated as another line.
However, if your website contains all the transactional data, with enough information to form your digital records, then you could, as you say, make a custom export from your website, with just the monthly totals for each VAT rate.
Do you mean that the digital records could be in our website, not the exports from the website?
It might be easiest to just import all orders into QF as the currency for each order is also different, and we’d get the correct VAT rate and amount. But then we’ll end up so so many sales transactions. Is that still the best and recommended way for MTD?
We could set up a bank feed from Paypal, stripe, but I don’t see how that would work as those don’t contain the VAT rate and amount.
If the records contained within your website contain all the information to comply with the requirement to keep digital records then yes, they could form your digital records.
If you read Paragraph 4.3.2 of the VAT notice 700/22, it says that “Where more than one supply is recorded on an invoice and those supplies are within the same VAT period and are charged at the same rate of VAT you can record these as a single entry.”
Hence my suggestion that you export either a custom report from the website, or create a summary spreadsheet which collates all the entries with the same VAT rate (so also same currency possibly) each month and just use that to import into QF.
It would be best to read through the VAT notice - paragraphs 4.2 and 4.3 refer to digital records and digital links, so that you can be sure you are doing the right thing, without ending up importing too much data into QF unnecessarily.
Thanks, we are on the annual accounting scheme, so I assume I can add them one a single invoice yearly then?
I still don’t quite understand how I can make the sheet to import. If I export orders and make a new sheet, I’d have to manually link this to the exported sheet by a formula like =SUM(sheet1:A1:A100) for GBP, A101:A150 for USD etc, as these would vary every month by the number of transaction. Is this allowed? I don’t see how I can make a fixed formula that would achieve this, unless all transactions on the export is same currency and VAT rate, and then I’d need up to 24 exports (8 currencies in VAT, zero rate and out of scope).
Is it possible to begin the digital records at the spreadsheet, without using any export at all? If I look at my computer screen and enter the amounts in the spreadsheet, that would create the digital records. Is that a workaround?
If not I think the only options is to import all sales. But I see QF has a limit of 250 sales for each import, and as I can’t edit the export, I’d have to find a way to export exactly 250 transactions on each csv, or can I maybe use some programming to divide the csv into max 250 lines after export?
Hi, yes editing the spreadsheet each time by way of links or formulae is absolutely fine. What is not is to manually re-key figures into another spreadsheet.
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