Invoice doesn't tally with paypal amount...
- Thread starter accyroy
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Elizabeth
Well-known member
Maybe fees that paypal tacks on for conversion?Just a heads up that the XenForo invoice doesn't tally with what is charged in PayPal in £.
Invoice states 103.41 and paypal states 105.83. Not a problem for me at all, though I may get nagged by the accountant. I just don't want any of us getting in trouble with the vat man!
Liz
Shelley
Well-known member
It looks like a conversion fee charged by paypal.
MGSteve
Well-known member
It won't tack on fees, rather it just uses a knobbled exchange rate.
Looking at the XenForo Invoice, its in US$ with a conversion to GBP. These will never match PayPal or credit cards due to the fact that the seller has no idea what the exchange rate will be for the buyer. The conversion is really given as a guide, that's all, the currency of the invoice is US$.
Ashley
Well-known member
As MGSteve has said.
For the purpose of the invoice, as it is in USD, the GBP amounts must be shown. In order to show the amounts in GBP, we use an exchange rate, as agreed by the VAT office (yes, they have agreed rates). The transaction is processed in USD and PayPal/credit card company use an exchange rate (you guessed that it isn't the same exchange rate used by the VAT people) and in some instances, a currency conversion fee, to convert from USD to GBP. It is unlikely that the 2 will match.
The invoice shows the GBP value to use for VAT returns although the total GBP amount is determined by the PayPal transaction or credit card company.
Accountants will take this in their stride, although they make a fuss about it, which means some thought is required...
For the purpose of the invoice, as it is in USD, the GBP amounts must be shown. In order to show the amounts in GBP, we use an exchange rate, as agreed by the VAT office (yes, they have agreed rates). The transaction is processed in USD and PayPal/credit card company use an exchange rate (you guessed that it isn't the same exchange rate used by the VAT people) and in some instances, a currency conversion fee, to convert from USD to GBP. It is unlikely that the 2 will match.
The invoice shows the GBP value to use for VAT returns although the total GBP amount is determined by the PayPal transaction or credit card company.
Accountants will take this in their stride, although they make a fuss about it, which means some thought is required...
SchmitzIT
Well-known member
I actually found hammers to work better on the bean-counters.
Rather than relying on Paypal, could you not setup your own option to charge customers in GBP? That will avoid a currency conversion at Paypal or HMRC and give a single GBP price that can be charged via Paypal and shown on invoices.
I don't think there are any easy solutions (at least based on my own experience in this area), but, hopefully you can figure something out.
Ashley
Well-known member
There would always be the option to opt to pay in USD. For the moment, the status remains. In due course, we will offer GBP payments and probably also Euros. The dilemma would also potentially be there for payments made in Euros.
I think that PayPal and possibly some card providers may also charge a "cross border" fee. This also leads to a payment that differs from what was expected, although probably not for those in the UK making a payment in GBP, but it is not just the current solution that has discrepancies.
I think that PayPal and possibly some card providers may also charge a "cross border" fee. This also leads to a payment that differs from what was expected, although probably not for those in the UK making a payment in GBP, but it is not just the current solution that has discrepancies.
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