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BigTee
March 30, 2019
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How do i deal with amazon euro payments to a currency account?

  • March 30, 2019
  • 1 reply
  • 0 views
I use a Worldfirst account; following conversion the money (GBP) is paid into my primary bank account.
Best answer by TaliaI

Hi.

I think you are misunderstanding the issue. I am (or soon will be) registered for VAT in the UK, France, Germany, Italy, Spain, Poland and the Czech Republic. I understand that Quickbooks does not have the facility to prepare VAT returns for all these countries.

 

As I will be preparing VAT returns for the 6 EU countries in due course and paying VAT to those countries I DO NOT want to be in the position where Quickbooks applies UK VAT to my EU sales and I in effect pay VAT twice (or appear to be doing something underhand because I failed to report something).

 

So my question is what code do I apply so there is NO UK VAT liability for EU sales? None of the Common VAT Codes appear to apply (nearly all my sales are to personal customers).

 

Excuse me if I am misunderstanding your comments.

Thanks

 


Hello,

 

QuickBooks does not automatically apply VAT to your transactions - it asks you which code you would like to use on each transaction. The option for a default VAT code is so you do not have to select VAT every time. You would not set one up if the transactions in the account will have differing VAT codes. If you do not want UK VAT to be applied at all, you can select the No VAT code as default - this will then not hit the VAT return at all.

 

Thanks,

 

Talia

1 reply

Kristine Mae
Kristine Mae
March 31, 2019

Good day, BigTee.

 

First, you'll have to turn on the Multi-currency feature so you can deal with different currencies. 

 

Then, create a new account for the euro transactions. In QuickBooks Online, you can only assign one currency to each account. Creating a new one will help you transfer transactions from the Worldfirst account to the foreign account. 

 

Here's how:

  1. Click Accounting, then choose Chart of Accounts.
  2. Click New.
  3. Choose the appropriate Account and Detail Types.
  4. Enter a desired name.
  5. Click the Currency drop-down arrow, then choose EUR Euro.
  6. Click Save and close. 

Lastly, here's how you can transfer a transaction:

  1. Click Banking, then go to Banking.
  2. Choose the bank account.
  3. Look for the euro transaction, then click to open it.
  4. Choose the Record transfer radio button.
  5. Click the Select transfer account drop-down arrow, then choose the euro account.
  6. Click Record transfer. 

If you have further questions, don't hesitate to let us know. 

B
BigTeeAuthor
March 31, 2019

Hi.

Thanks for that.

The only option that offers the Currency drop-down arrow appears to be "Cash at bank and in hand" I assume I select that?

 

What do I do about VAT? The Worldfirst account contains payments from sales to EU countries and is subject to VAT in those countries which will in due course result in payment of VAT to the various EU VAT authorities. I'm aware that Quickbooks doesn't have a direct method of dealing with multi country VAT. However in creating the account there is the option to select a Default VAT code given that I don't what to mix up EU VAT with UK VAT what should I select?

Thanks

 
T
TaliaI
April 1, 2019

Hello,

 

Yes, this is a bank account. You do not need to select a default VAT code, however if you would like to, select the correct ECS code as these are the European VAT codes.

 

Thanks,

 

Talia

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