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sally37
Level 1

GoCardless are charging VAT on their fees. Why does QBO not deal with this correctly?

 
3 REPLIES 3
BettyJaneB
QuickBooks Team

GoCardless are charging VAT on their fees. Why does QBO not deal with this correctly?

You've got me here to guide you on how to deal with the VAT on GoCardless charges in QuickBooks Online, @sally37.

 

The VAT charges for bank fees will not be recorded automatically in QBO since the system will only allow you to track taxes on the expense, checking, and income accounts.

 

To record this transaction properly, you'll need to create an expense to this entry so you can allocate a VAT code to the bank fee. This way, it will be added to the appropriate bank account and will help show the tax amount you've paid.   

 

Here's a sample snip on how your expense transaction will look like: 

 

After that, you can now easily match and categorize your bank entries so you can have a smooth reconciliation. You can always use this link for your reference: Categorise and match online bank transactions in QuickBooks Online.

 

Let me know if you need additional information by clicking the Reply button below. I'm always right here to assist you. Take care!

sally37
Level 1

GoCardless are charging VAT on their fees. Why does QBO not deal with this correctly?

The video that you sent shows me how to set up a rule to deal with transactions.  Can i do this to automatically handle the VAT on GoCardless bank fees even though my bank current account is not connected to QB?

 

I opted to use GoCardless to manage DD transactions but if I have to manually adjust each transaction to be able to process the VAT on the bank fees then I may have to rethink.  All other online accounting packages seem to have been able to make the change to facilitate the VAT, why not QBO?

JonpriL
Moderator

GoCardless are charging VAT on their fees. Why does QBO not deal with this correctly?

I wish I could make it better, @sally37.

 

As of the moment, there isn't an integrated way to automatically categorise the VAT of your bank transaction fees. In the meantime, you can consider manually recording it by following the suggestion above.

 

But don't worry, I'll take note of your request and share it with our developers so they may include this one for future product updates.

 

Additionally, you can also browse for the content of this helpful article for the recent improvements rolled out in QuickBooks: Discover the QuickBooks UK Blog.

 

If you have any other questions, please let me know by leaving any comments below. Stay safe!

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