I have PayPal set up as Lump all sales under one client, so when it imports transactions is auto tags sales to a client named “PayPal” and auto generates a basic invoice for the transaction. I have it set up so none of the invoices show VAT and if someone wants an invoice for one of these PayPal sales then I assume that I can just modift their invoice to show the VAT separated and give them a copy of that. I would like to know if I change any of the invoices to show VAT, will it actually affect my figures for my VAT returns. Most of the PayPal sales are eBay sales, where I intend to set up a client named “eBay” and tag the lump sum monthly sales total £ figure as a single sale, where I would account for the VAT.
Can you please clarify if I am going about this the right way.
Can’t really do that because the invoice numbering system would be different if using 2 separate platforms, eBay and PayPal. The guidelines state that invoices should run sequentially in number order and only by using QF would they do this. What’s wrong with using QF for invoicing, it has nice quality invoices.
Anyhow that is not the main question I was looking for an answer for, I really need to know avout not making adjustments to PayPal invoices affected VAT shown for VAT returns if at all…
If you record all ebay sales under ebay client and want to issue individual customers invoices as well, are you not duplicating revenue and any additional invoice creation will effect vat return
So how can it be done then? If I use the PayPal feed, some of which are eBay sales, then where do I account for the actual ebay sales. After all they sales are eBay sales not PayPal sales, PayPal is just the middle man collecting the money for me. Also where would I then record eBay fees?
Another issue is how would I tell QF what poetion of my eBay sales are outside Europe so outside the scope of VAT? How does it allow me to ensure that these particular sales do not add to the VAT I have to pay.
It seems there are many issues with this system and it is not flexible for different situations.
Do you mean create one client called “eBay Vatable” and another called “eBay non-vatable” and then invoice “eBay Vatable” with the UK and EU sales excluding sales to EU VAT registered businesses, and invoice “eBay Vatable” with the sales that are outside the EU, so outside the scope of VAT?
If that is right and I do that then that means I cant use the PayPal feed because that shows ALL sales done in ebay and I don’t want to account for them twice.
One simple way to record this would be like this, create one customer , call it ebay Sales, get monthly analysis from ebay based on vat and non vat and keep that record as backup working for figures in QF. Do a journal like this in QF
Dr Payapal a/c
Cr Ebay sales
Cr vat
if you getting automated credit from paypal to your bank that you can tag as inter bank transfers. There wont be any need to get pay pal feed.
Other way is get paypal feed and while tagging create new customers and invoices, which is time consuming
Lets say your total sales of month from ebay is 1000, split is 300 non vat and 700 vat able. Once you on journals screen, create new journal like followings
Just thinking of a way to also handle this. If I use the PayPal feed and have a record of the individual sales that are outside the scope of VAT, can I simply go to each of the PayPal feed invoices and edit them manually to have no VAT. That would work right?
