VAT on web sales - mixed Eu/non-Eu + postage

Question asked by Richard Newstead 11 years ago

I run an online business. Our customers are all over the world. We collect payment by card through several sources. They transfer the money to us (minus their handling fee). Those receipts include an element of VAT. That element is not 20% due to postage and non-Eu sales. The accurate breakdown is done monthly from the webstore system. In the meantime I would like the VAT accrual on Clear Books dashboard to be a bit more accurate. To do this I need to be able to set a notional VAT rate of something less than 20% on the transfers from the card companies. This would be corrected monthly using the accurate figures from the store. Any ideas on how to "fudge" a solution?.

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2 Replies

Hello Richard,

The only way to "fudge" the figures is to use a journal. This will allow you to debit or credit the VAT Control account which is where all the VAT amounts go. This is the short way.

The long way is below.

Alternatively, you will need to make the invoice with 2 items. This will be £100 for the main service at 20% and then £3 for the postage and packing at 0%.

The payment received will be £X after the handling fee.

You will need to try this on the Clear Books Demo account in order to find the amounts and the adjustments in both instances. To get to the demo account, you will need to click on your business name on the top right and then select Clear Books demo.

Vanish.

Best answer
11 years ago

Hi Vanish

I realise that the correction would need to be applied via the journal. I was really just looking for a fudge to get the accrued VAT on the dashboard slightly close to the real amount. Doing it the long way might work. i will give it some thought!

Regards Richard

11 years ago

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