VAT on Hermes Parcelnet Limited paid by PayPal

VAT on Hermes Parcelnet Limited paid by PayPal

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Hello,

I have a client with an online retail operation with many small value TXs going through PayPal.

Hermes Parcelnet Limited is the carrier and their charges are paid from PayPal as many small value amounts. 

I have not seen VAT invoices for these (the website indicates that emails are sent with VAT information for each transaction) but believe that these should be standard rated for VAT.

I can drill down into the TX ID on PayPal and this clearly shows the VAT charge as nil.

I assume that this is incorrect but wondered if this can be changed somehow in the PayPal settings so that exported data shows the VAT?

If this is indeed incorrect at 0 VAT I wonder how much is being lost in terms of automated/import of data from systems like this................the client is new to me and has not claimed VAT on this to date.

 

 

Replies (3)

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By Ian McTernan CTA
03rd May 2019 13:41

Ask Hermes for a monthly statement, or better yet get the client a monthly or weekly account with them. Saves numerous small transactions and recording of them- one payment for all the various amounts is much easier to deal with than many!

Not all the courier chargers will contain VAT, but provided the client has an actual customer number with Hermes they should be able to provide the details you want.

And indeed many people lose out on a lot of VAT on instances like these and Paypal, etc.

Thanks (1)
RLI
By lionofludesch
03rd May 2019 14:23

If there's no VAT invoice, whether full or less detailed, there's no VAT to claim.

This is essentially an admin exercise, I'm afraid.

Thanks (1)
John Toon
By John Toon
07th May 2019 15:27

Easiest way to get these invoices is to use the Fetch feature in ReceiptBank or similar OCR system. This will automatically log into your client's account with various carriers and extract the invoices as they are raised (and historically if needed).

These can then be automatically pushed into Xero or QBO.

Thanks (0)