Sales come into the bank account net of commission fees. Sales are subject to 20% VAT, the commission is an EC reverse charge service. I am recording the transaction as a Deposit and then using the split function to divide the VATable income between income codes. I then add another line and express the commission as a negative value using code ECS 20%, to reach the correct net amount received into bank. It seems to me that QB online is recording the 20% VAT on the reverse charge wrongly. Eg the commission is £16.68 and the VAT is showing as £3.34 when I believe it should be £2.78? Am I doing this wrong and is there a better way of dealing with these sales receipts?
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