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Level 1

How do i deal with amazon euro payments to a currency account?

I use a Worldfirst account; following conversion the money (GBP) is paid into my primary bank account.
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Best answer 04-04-2019

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QuickBooks Team

Re: How do i deal with amazon euro payments to a currency account?

Hello,

 

QuickBooks does not automatically apply VAT to your transactions - it asks you which code you would like to use on each transaction. The option for a default VAT code is so you do not have to select VAT every time. You would not set one up if the transactions in the account will have differing VAT codes. If you do not want UK VAT to be applied at all, you can select the No VAT code as default - this will then not hit the VAT return at all.

 

Thanks,

 

Talia

View solution in original post

7 REPLIES 7
QuickBooks Team

Re: How do i deal with amazon euro payments to a currency account?

Good day, BigTee.

 

First, you'll have to turn on the Multi-currency feature so you can deal with different currencies. 

 

Then, create a new account for the euro transactions. In QuickBooks Online, you can only assign one currency to each account. Creating a new one will help you transfer transactions from the Worldfirst account to the foreign account. 

 

Here's how:

  1. Click Accounting, then choose Chart of Accounts.
  2. Click New.
  3. Choose the appropriate Account and Detail Types.
  4. Enter a desired name.
  5. Click the Currency drop-down arrow, then choose EUR Euro.
  6. Click Save and close

Lastly, here's how you can transfer a transaction:

  1. Click Banking, then go to Banking.
  2. Choose the bank account.
  3. Look for the euro transaction, then click to open it.
  4. Choose the Record transfer radio button.
  5. Click the Select transfer account drop-down arrow, then choose the euro account.
  6. Click Record transfer

If you have further questions, don't hesitate to let us know. 

Level 1

Re: How do i deal with amazon euro payments to a currency account?

Hi.

Thanks for that.

The only option that offers the Currency drop-down arrow appears to be "Cash at bank and in hand" I assume I select that?

 

What do I do about VAT? The Worldfirst account contains payments from sales to EU countries and is subject to VAT in those countries which will in due course result in payment of VAT to the various EU VAT authorities. I'm aware that Quickbooks doesn't have a direct method of dealing with multi country VAT. However in creating the account there is the option to select a Default VAT code given that I don't what to mix up EU VAT with UK VAT what should I select?

Thanks

 
QuickBooks Team

Re: How do i deal with amazon euro payments to a currency account?

Hello,

 

Yes, this is a bank account. You do not need to select a default VAT code, however if you would like to, select the correct ECS code as these are the European VAT codes.

 

Thanks,

 

Talia

Level 1

Re: How do i deal with amazon euro payments to a currency account?

Hi.

You have given me a choice which begs the question what are the advantages and disadvantages of those options? In other words why would I NOT select a default VAT code conversely why would I. 

Thanks 

QuickBooks Team

Re: How do i deal with amazon euro payments to a currency account?

Thanks for the response, BigTee.


Allow me to step in for a moment and provide some information about using tax codes in QBO.


The tax codes used to track products/goods are based on the HMRC guidelines. For transactions from within EU, you’ll have to select the ECS/ECG codes to declare the output tax and reclaim the input tax.


This is also to ensure they are properly reported on the VAT 100. You’ll only use the default VAT code for transactions processed within UK.


For more in-depth information, check out the following articles:

 

Those resources should get you on the right path.


If there’s anything else I can help you with, post a comment below. I’ll be right here to assist further.

 

Level 1

Re: How do i deal with amazon euro payments to a currency account?

Hi.

I think you are misunderstanding the issue. I am (or soon will be) registered for VAT in the UK, France, Germany, Italy, Spain, Poland and the Czech Republic. I understand that Quickbooks does not have the facility to prepare VAT returns for all these countries.

 

As I will be preparing VAT returns for the 6 EU countries in due course and paying VAT to those countries I DO NOT want to be in the position where Quickbooks applies UK VAT to my EU sales and I in effect pay VAT twice (or appear to be doing something underhand because I failed to report something).

 

So my question is what code do I apply so there is NO UK VAT liability for EU sales? None of the Common VAT Codes appear to apply (nearly all my sales are to personal customers).

 

Excuse me if I am misunderstanding your comments.

Thanks

 

Highlighted
QuickBooks Team

Re: How do i deal with amazon euro payments to a currency account?

Hello,

 

QuickBooks does not automatically apply VAT to your transactions - it asks you which code you would like to use on each transaction. The option for a default VAT code is so you do not have to select VAT every time. You would not set one up if the transactions in the account will have differing VAT codes. If you do not want UK VAT to be applied at all, you can select the No VAT code as default - this will then not hit the VAT return at all.

 

Thanks,

 

Talia

View solution in original post