What if i dont create paypal fees invoices but full amount i received in total after Paypalfees

Support
1

what if i don’t create PayPal fees invoices but the full amount I received in total after Paypal fees. For exmpl i get some money into and Paypal charges a fee but in the end, I receive the total amount of money after fees. If i manually create transactions such us "money received = 43$ " Would that be an issue or wrong?

45$ product cost
paypal fee 2$
total amount 43$

2

The issue with that is your turnover will be understated.

The second issue with that is, maybe not in your case but in others. You may hit the vat registration threshold but wouldn’t know it because you’ve understated your turnover.

3

How do you mean understated

4

But if i didn’t crossed over vat threshold and all should that be incorrect since im not getting that money in the whole paypal takes the fee imidetly without giving me 45 than charging 3, but it pays me directly 43

5

Understated means lower than it should be.

If you sell something for £50 and PayPal take £3 in fees. Your turnover is £50 not £47.

Therefore just tagging the amount received will lower your turnover by £3. Do this to every transaction and your turnover ends up being way lower than it should be

6

Makes no difference what your get in your pocket, your turnover is the total amount, and their fee is an expense.

7

Because i need to import every transaction mannually cause almost all payments are in usd but my main curency is GBP. I need to use currency converter for every transaction, which on the end will definetely show more taxes to pay because of inacurracy

8

I appreciate its a lot of effort but that unfortunately doesn’t change the rules surrounding recording your turnover correctly.

9

You can enter the PayPal fee once a month as a lump sum. You can request the accurate figure in your PayPal account.
Hope this helps

10

Thanks for help, i also found out that paypal has currency convertion for every transaction in all transactions tab clicking individually on each customer, it shows the net sales, not including fees, this makes it much easier to do it

11

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