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shau's avatar
shau
Experienced Cover User
6 years ago
Solved

PayPal Fees vs Merchant Fees for the use of PayPal

So when I receive PayPal fees from PayPal, I mark them to N-T tax code, since as I understand, financial services do not fall under the purview of GST.

 

But when I charge my customers for using PayPal to cover those costs, to the tune of 3% of the value of the transaction, must this fee be subject to the GST tax code?

  • DannyTangney's avatar
    DannyTangney
    6 years ago

    Hi Steven_M ,

     

    Thanks for your reply, sorry for not responding sooner but I've been wrestling with payroll this week...

     

    The Payroll Activity Detail and Payroll Register Detail reports match up on the Wages hours perfectly, but for all employees that I checked, the Entitlements are miles off, so I'm not sure those numbers are supposed to match...

     

    Using the Employee->Employee Details->Pay_History screen, I found out that for the employees in question, MYOB hadn't record all of the leave accrued and taken in July and August last year...

     

    Based on another forum post, I corrected these omissions and the employee card, Entitlement Balance [Summary] report, Entitlement Detail Report and payslip now all match, so that has solved the immediate problem.

     

    As far as I know, there have been no manual adjustments to any employee card's leave details beyond the corrections mentioned in this post, so I guess that given how long ago it all happened and the lack of any recurrence we'll be unlikely to work out what happened so this case can probably be considered closed...

     

    Thanks for your assistance.

     

    Regards,

    Danny

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  • amylee91's avatar
    amylee91
    MYOB Staff
    6 years ago
    Copy LinkReport

    Hey shau 

     

    While i am not able to advise if you need to have gst assigned, that is more something you would need to ask your financial advisor, i can give you this Link

     

    This link explains how you process these payments and how the accounts work.

     

    Regards

    Amylee

     

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PayPal","id":"message:584371","revisionNum":1,"repliesCount":1,"author":{"__ref":"User:user:194411"},"depth":0,"hasGivenKudo":false,"board":{"__ref":"Forum:board:Tax_BAS_GST_EOFY"},"conversation":{"__ref":"Conversation:conversation:584371"},"readOnly":true,"editFrozen":false,"moderationData":{"__ref":"ModerationData:moderation_data:584371"},"body":"

So when I receive PayPal fees from PayPal, I mark them to N-T tax code, since as I understand, financial services do not fall under the purview of GST.

 

But when I charge my customers for using PayPal to cover those costs, to the tune of 3% of the value of the transaction, must this fee be subject to the GST tax code?

","body@stringLength":"344","rawBody":"

So when I receive PayPal fees from PayPal, I mark them to N-T tax code, since as I understand, financial services do not fall under the purview of GST.

 

But when I charge my customers for using PayPal to cover those costs, to the tune of 3% of the value of the transaction, must this fee be subject to the GST tax code?

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PayPal Fees vs Merchant Fees for the use of PayPal","moderationData":{"__ref":"ModerationData:moderation_data:585233"},"body":"

Hey shau 

 

While i am not able to advise if you need to have gst assigned, that is more something you would need to ask your financial advisor, i can give you this Link

 

This link explains how you process these payments and how the accounts work.

 

Regards

Amylee

 

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Hey  

 

While i am not able to advise if you need to have gst assigned, that is more something you would need to ask your financial advisor, i can give you this Link

 

This link explains how you process these payments and how the accounts work.

 

Regards

Amylee

 

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