Skip to main content
M
Malc99
July 9, 2020
Solved

GoCardless to charge VAT on their fees. How will QBO deal with this

  • July 9, 2020
  • 4 replies
  • 0 views

Good morning,

 

I have scheduled monthly client invoices for which I use GoCardless to receive payments.  All the GC mandates are imported so everything is automated.  GC have announced that from September they are to start charging VAT on their fees so can you tell me how the automated process will work.

 

For example, if I have an invoice for £100 (incl vat), GC currently pays £99.90 into my bank account and QBO posts the £0.10 fee to my GoCardless Fees expense account.

 

Once GC start charging VAT, their deduction will be £0.10 + VAT of £0.02.  So the net into my account will be £99.88.  Therefore my question is, will the £0.12 all be posted to my GoCardless Fees account or will it be split as £0.10 to GoCardless Fees and £0.02 to VAT Control

 

Many thanks,

Malcolm

    Best answer by emmam6

    Hi Malc99 We have not been given any formal information in regards to the implementation as of yet. Your assumption is correct, that you will be notified once there is it is ready to be implemented.👏


    Hello Community Users! We just wanted to come back to this thread to advise we updated the way the automation of Go Cardless fees accounts for the VAT now charged by them. So this should be posting correctly without needing to make any manual changes. Any questions just reply back here.

    4 replies

    A
    Ashleigh1
    July 9, 2020

    Hello Malcolm, 

     

    Welcome to the Community page, 

     

    Quickbooks is aware of this change and is currently looking into it at present. 

    M
    Malc99Author
    July 9, 2020

    Thanks for the update Ashleigh.

     

    I assume there will be some communication from QBO when a solution is found/implemented

    P
    payment after leaving
    July 9, 2020

    Hi Malc99 We have not been given any formal information in regards to the implementation as of yet. Your assumption is correct, that you will be notified once there is it is ready to be implemented.👏

    B
    benspector
    September 29, 2020

    Hi All,

     

    Can we get an urgent update on this? We need to account for VAT on GC fees but QBO seems to be automatically entering transactions (incorrectly).

     

    If there's no update to the integration, how are people solving this manually? Where is the transaction that needs to be updated to include a VAT element?


    Thanks,

     

    Ben

      M
      Malc99Author
      September 29, 2020

      Hi benspector,

       

      I completely agree that it's not okay for Intuit to be taking so long on this, especially when they've been aware of the issue for months.

       

      In the meantime I'm planning on getting a copy of the monthly invoice from GoCardless (click on the gear icon at top right, then Company Info and select the month you need from the dropdown in the Billing section), and then posting a manual journal in QB

       

      A pain, but not sure what other option we have until Intuit pull their finger out.

       

      Cheers,

      Malcolm

      B
      benspector
      September 29, 2020

      I was fiddling around with this earlier and I think the easiest in the meantime is to find each deposit in your GoCardless Fees account, scroll to the bottom, change the additional deposits line to inclusive of VAT, and change to standard 20%.

       

      What do you think?

      P
      payment after leaving
      November 9, 2020

      Hi benspector You could however we recommend that you , allocate the VAT to the Go Cardless Fees account and edit the 'additional fund's' line to inclusive of VAT, and set this to 20%.

      R
      RitchieFarr
      November 9, 2020

      To everyone with this issue:

       

      I tested changing the additional funds line to be inclusive of VAT and setting the VAT rate to 20%. However

      I found that this does not change the amount of VAT due on VAT returns. I reported this behaviour to Quickbooks as the advice being given is clearly not giving the intended results. It seems like because the VAT part of the payment would get entered as a negative amount this is ignored in VAT calculations.

       

      We decided that it would be better to make an adjustment when preparing a return, based on invoices from GoCardless.

       

      I also suspect that this problem is also delaying Quickbooks from updating the integration, as otherwise it should be a simple fix for the developers to change the default VAT mode and percentage for the charges.

       

      I hope this helps.

        B
        benspector
        November 9, 2020

        Hi Ritchie,


        Are you sure about that? I'm looking at VAT Audit Report and the GoCardless payments received are showing as a reduction to Box 1. I'm sure that's not 100% correct way to do it, but it achieves the same result of reducing VAT to pay?

         

        Ben

        M
        Merlin
        November 9, 2020

        Hello.

         

        Has there been any update for this as we've just picked up on the fact QB isn't applying VAT correctly on Gocardless integrated transaction fees?

         

        After speaking with GoCardless they have advised all third party integration development teams have been notified of the impending change well in advance with plenty of notice. However in their words "some third parties have been quicker than others at implementing the change\fix"

         

        Quickbooks, lets get this issue sorted please!

         

         

        Terms & ConditionsAccessibility statement