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etsygirl
Level 1

Recording VAT on etsy fees and transactions

hi,  I'm a etsy seller based in the UK, I am not registered for vat and am struggling trying to find out the correct information where to record the vat I pay on my etsy fees, most of the information I have found so far seems to conflict.   The items I am trying to record are:

 

VAT: PROCESSING FEE

VAT: TRANSACTION

VAT: AUTO-RENEW SOLD

VAT: AUTO-RENEW EXPIRED

VAT PAID BY BUYER

VAT: RENEW EXPIRED

VAT: OFFSITE ADS FEE

 

Also I want to make sure everything else Ive recorded is in the correct place/format 

 

DEPOSITS SENT TO BANK

LISTING FEE

REGULATORY OPERATING FEE

TRANSACTION FEE

FEE PROCESSING FEE

MARKETING FEE FOR SALE MADE THROUGH OFFSITE ADS

PAYMENT CARD PAYMENT (when etsy account doesn’t have enough to pay for fees)

SALE PAYMENT FOR ORDER

TAX SALES TAX PAID BY BUYER

 

any help would be greatly appreciated, I'm new to this all and want to make sure I'm doing it right - thanks

Solved
Best answer Sunday

Accepted Solutions
Trindleberry Pets
Returning Member

Recording VAT on etsy fees and transactions

this cant be done , as your fees are paid from Etsy sales, so would never show up on Quickbooks. 

all fees for example are all taken out of your Etsy balance. 

theres no rule on quickbook that allows multiple subtractions on incoming sales . 
 

the reason for me asking about the long-term goals on your VAT plans ( dont take this rudely please ) 

my main question
Why are you having to account for VAT ? its hassle and stress & not needed. until your VAT registered. 

- if its because in the future your want to be VAT compliant - you dont need to account for these
-if its due to universal credit ( you dont need to account for these as they work on income figure and outgoing figure ( no breakdowns needed ) 
-if its for peace of mind, then i would just ignore it , & use the figures given in the finance tab on etsy.  - small businesses are hard as we tend to do all the bookkeeping ourselves, so less headache is a better thing haha

you could always go to options on etsy  - download data - sales figures > month & year and this will show it it all on an excel spreadsheet & try get it imported into quickbooks, but unsure if it could handle all the data fields. 

View solution in original post

etsygirl
Level 1

Recording VAT on etsy fees and transactions

Thanks, I spoke to someone concerning the Etsy/QuickBooks integration and like I thought the sales figures are only gross revenue not net.  The developer is aware of the issue and this hopefully will be resolved in the future.

View solution in original post

9 REPLIES 9
Trindleberry Pets
Returning Member

Recording VAT on etsy fees and transactions

just went through all this recently. 

its against the law to charge VAT without being registered for VAT 

but let me try get some more information ( im also UK , Cornwall :) ) 


but to some up your question, QuickBooks has an integration with Etsy, so will import it all for you, will all relevant data including setting up the % you would pay to HMRC on sales 

best wishes

 

Chris 

Trindleberry Pets
Returning Member

Recording VAT on etsy fees and transactions

completely ignore that, haha.  i just re-read it - and its the VAT on each sale you want to ETSY directly . 

Trindleberry Pets
Returning Member

Recording VAT on etsy fees and transactions

can i ask why you want to record VAT on all the fees? 

Trindleberry Pets
Returning Member

Recording VAT on etsy fees and transactions

just a little heads up regarding fees. 

so i presume you plan on becoming VAT registered  - if this is the case 

 

as soon as your given your VAT number via HMRC - Etsy requires this,  your Etsy account then becomes "Business to Business" - meaning no VAT is charged to you on Esty  - as they are Northern Ireland based. 

you as a business now-  are required to pay the government the fees from your sales 

etsygirl
Level 1

Recording VAT on etsy fees and transactions

I don’t charge vat on what as sell as I’m not registered for that, these are the charges which Etsy put on my sales and collect on my behalf.  I’m just trying to record all the data from my Etsy sales as the integration software only imports sales data from Etsy to QuickBooks.  It doesn’t transfer any fees I pay or the vat I also pay, so without importing these, my overall figures would be completely wrong and would only show my gross sales, rather than net.

 

so for example this month currently I made £32.35 in sales, my fees were £14.24 listing fees, £2.12 transaction fees, £2.12 processing fees, £0.11 Regulatory Operating Fees, £3.59 VAT on seller fees and £0.36 on marketing.

 

so the amount shown on the Etsy to QuickBooks transfer only shows the overall total as £32.35 as opposed to the net amount which is £9.81 (after all fees, etc).  So I obviously want to record all these figures so that my net amount is correct but Iam not sure how to record these on my chart of accounts to make it so, any help would be appreciated - thanks

AbegailS_
QuickBooks Team

Recording VAT on etsy fees and transactions

Thanks for reaching out, @Trindleberry Pets

 

If you aren't VAT Registered, you still pay VAT on transactions but you can't reclaim it (as with any private consumer).  It's therefore just another cost (Expense) to add to your outgoings. If you want to track how much VAT you're paying you can separate it out (in any way you prefer) but the simplest way is just to enter all your costs including VAT. Here's how: 

 

  1. Go to Taxes, then select VAT.
  2. Select Payments, then select Record Payment.
  3. Select the bank account you’ve used to pay HMRC.
  4. Enter the payment date and amount in the appropriate fields.
  5. Add a memo if needed.
  6. Select Save.

To further help you with this, I recommend reaching out to your accountant for guidance on how to properly account for tax. you can use our Find an Accountant tool to look for one near your area. 

 

For detailed information, you can refer to this article: Manage VAT payments in QuickBooks Online. This will help you track VAT payments inside the program.

 

Additionally, I've added a helpful resources you can read that provide details how to file: File your VAT return and record tax payments in QuickBooks Online.

 

Drop by again on this thread if you need assistance managing VAT settings inside the program. Our team will always be around to lend a helping hand.

Trindleberry Pets
Returning Member

Recording VAT on etsy fees and transactions

this cant be done , as your fees are paid from Etsy sales, so would never show up on Quickbooks. 

all fees for example are all taken out of your Etsy balance. 

theres no rule on quickbook that allows multiple subtractions on incoming sales . 
 

the reason for me asking about the long-term goals on your VAT plans ( dont take this rudely please ) 

my main question
Why are you having to account for VAT ? its hassle and stress & not needed. until your VAT registered. 

- if its because in the future your want to be VAT compliant - you dont need to account for these
-if its due to universal credit ( you dont need to account for these as they work on income figure and outgoing figure ( no breakdowns needed ) 
-if its for peace of mind, then i would just ignore it , & use the figures given in the finance tab on etsy.  - small businesses are hard as we tend to do all the bookkeeping ourselves, so less headache is a better thing haha

you could always go to options on etsy  - download data - sales figures > month & year and this will show it it all on an excel spreadsheet & try get it imported into quickbooks, but unsure if it could handle all the data fields. 

etsygirl
Level 1

Recording VAT on etsy fees and transactions

Thanks, I spoke to someone concerning the Etsy/QuickBooks integration and like I thought the sales figures are only gross revenue not net.  The developer is aware of the issue and this hopefully will be resolved in the future.

Trindleberry Pets
Returning Member

Recording VAT on etsy fees and transactions

glad they could point you in the right direction . 

just having a look at my section 

 

if you go to on QuickBooks 

go to sales 

click customers 

select a customers name ( this is someone who's bought from you on Esty ) 
this will open a "overview of how many times this customer has bought from you etc & their transactions"

 

 

click the "edit text on right" - of the sales that has shown.  ( this is you editing that sale data ) 
scroll down to " where it says service date / product / service etc  " 

it lets you add lines & create expenses for that sale. so you could add the VAT expenses, then manually add it to every order - however if your Esty shop gets 100's of orders a week, this will be super time consuming. 

 

if you offer discounts on Esty  ( this does actually show up on QuickBooks automatically ) 
i have attached a photo 
Best wishes 

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