Hello
@DragonByte Tech, I have a question about VAT. Which is better?
Should we charge VAT using eCommerce with the
Enable sales tax checkbox checked?
Or should we have Paypal charge VAT?
I believe your system is better because you automatically update the country VAT rates whereas Paypal does not.
I ask because I have
both enabled (I now realise). The figure we are charging
is including VAT, but by eCommerce (I'm almost certain) because Paypal is showing invoices with zero VAT. (In this image of the Paypal invoice for a customer's transaction - an addon sale - the transaction is £20 + VAT).
View attachment 287059
Is that because your system is instructing Paypal to not charge tax?
Ideally eCommerce should tell Paypal that VAT of 20% has been charged so that Paypal correctly reports this on its invoices.
Should we switch off sales tax on eCommerce and let Paypal add the VAT? Because we rely on the Paypal information rather than the eCommerce information when doing the bookkeeping (in part because the Paypal transaction log can be exported as a CSV whereas the eCommerce purchase log can't).
Thanks.