HOME / COMMUNITY Switch to knowledge base

PayPal Auto Tagging fees as 0% VAT on purchases

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?

Hi @JessQF,

How are you creating the paypal fee purchases?

They are automatically created via the live feed

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.

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.

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

This topic was automatically closed after 6 days. New replies are no longer allowed.