PayPal Auto Tagging fees as 0% VAT on purchases

Support
1

I’m advised by our accountant that the PayPal Fees are now supposed to be marked as VAT exempt. Quickfile creates a purchase automatically for the PayPal fees as 0% VAT.
How do I change the settings to create these purchases as VAT exempt?
At the moment I am having to go in and manually change every single PayPal fee purchase to VAT exempt.
Surely it would make sense to be able to check a “VAT exempt” box in the supplier details?

2

Hi @JessQF,

How are you creating the paypal fee purchases?

3

They are automatically created via the live feed

4

Hi @JessQF,

I have just double checked and 0% and exempt are handled the same way within QuickFile so you shouldn’t need to go into the invoices to change them individually.

5

Thank you.

The only issue is our accountant says they shouldn’t show on the VAT return any more and when tagged with 0% VAT they are showing on the VAT returns.

6

Hi @JessQF,

If you look at this link: How to fill in and submit your VAT Return (VAT Notice 700/12) - GOV.UK at point 3.7 it shows what should/shouldn’t be included in box 6 of your return.

Hopefully this helps, but in regards to QuickFile both VAT options are handled the same

7

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