How do I account for VAT paid on Ebay sales in QB when cash is in Paypal account? Eg. 5.99 sale, £1. VAT due, cash paid in Paypal 5.52 after Paypal charges

Hello Sales115

How are you recording the 5.99 sale and the 0.47 charge in the QuickBooks itself?

Usually you would create the sales receipt or invoice for the full amount,in this example 5.99 with the vat code on,as the customer is paying the full amount to you,in the payment account you would select undeposited funds.on the sales receipt/invoice

Then you would select bank deposit from the + symbol in the top right ,tick the transaction in the select payments included in this deposit ,making sure the date and bank deposited to are correct.Then in add funds to this deposit select the Paypal charges expense account you have set up(or set up one if you need in the chart of accounts)the description and in amount put -0.47 in this example. It would always need the minus symbol in front of it when it is fees.It will then record the fees,deposit the remainder in the bank and record the vat

Emma