Importing Paypal GST Taxes

Hey,

I run an eCommerce shop and recently registered for GST in Australia. Now I’m required to collect GST from Australian purchasers of my digital products (books, audios, etc…).

I know you can enable by default all income to be inclusive of GST for the Paypal “Bank Account” I’ve created. However, 95% of my customers are non-Australian residents.

I thought the best way would be to create some sort of Rule as I’ve done for the Paypal Fee’s but for all the collected GST from Australians (to make my BAS quarterlies easier). After importing into Manager the QIF export however I noticed it’s not importing the collected Taxes by Paypal.

When I’m creating the QIF file I have all the non-changeable default fields as well “Transaction Details - Taxes” selected but nothing. I know for sure there’s at least one customer who is Australian and had Taxes associated with her purchase but when I check the invoice it only shows the Gross Total in one line + Fee in the other but no taxes.

I’ve also tried exporting it from Paypal as a CSV, and I can clearly see a column that says “GST” with some of the rows having an amount in them, but when imported into Manager it doesn’t import the GST amount either.

How can I go about importing the collected taxes from Paypal into my Bank Account Transactions?

Thank you.

i believe this has been discussed in the forum earlier and solutions were given. try searching the forum. it is very unlikely to get response for an already discussed topic in the forum.

I’m sorry if I’m asking a question that’s already been answered but after searching for a while I can’t seem to find anything specifically dealing with importing the gst taxes from paypal that are only associated with some transactions (rather than like most people have where there’s a default 10% gst on all transactions in that bank account).

If anyone knows of a discussion that has touched on this topic, could you please share a link?

Actually, you cannot do this. You can set sales invoices to be tax-inclusive by default. So can you explain exactly what you did or did not do in this regard?

Can you look at the QIF file with a text editor to see if any tax was actually exported? If it isn’t in the export, it obviously won’t make it into Manager through the import.

Can you also post a screen shot of the entry screen for the bank rule you created?

Thanks for your response Tut.

I’m sorry I mispoke. While reading through the forums I found a few cases where people used paypal for their business bus since all business was local they setup manager as you said to have all sales invoices as tax inclusive by default. The only thing I’ve touched in Manager regarding taxes is I’ve added a “GST 10%” option in the “Settings - Tax Codes” section and use it only on expenses I’ve bought here in Australia to know how much tax I’m paying via my local expenses (hosting and all other big expenses are outside of Australia).

I checked the QIF file and it doesn’t seem to export the Taxes of the transactions I know have taxes associated with them which is why I tried with the CSV. Same settings during exportation but in the CSV it does export the GST column correctly. But when I tried to import the CSV into Manager (using the advice you provided another paypal user here ) I could get it to bring up the Fee’s and the Reserve Hold but not the GST Taxes associated with the sale.

Here’s my Bank Rules screenshot:

This isn’t something related to Manager, then. One question that comes to mind, though, is whether PayPal is actually separating the tax, or are they reporting a tax-inclusive amount. If they are reporting tax-inclusive amounts, you’ll have to edit the transactions to apply the tax code. Manager will then back out what would have been the untaxed portion and will separately send the tax amount to Tax payable. I don’t know how PayPal works where you are, but I’m assuming they are not remitting any taxes owed for you, just collecting them from customers and passing them along to you for remittance.

But does it show the untaxed amount, too, or just what the tax calculation was. You could have the same situation here. I would not, if I were you, develop a process dependent on CSV files, because @lubos has indicated his intention to eventually do away with them. They are just too problematic.

As for the screen shot, I wanted to see the definition screen for the bank rule, not the list of bank rules.

From what I can tell, it seems you’ve pointed out a key thing there as the eCommerce software I use (Easy Digital Downloads for Wordpress) passes on the collected tax amount and it becomes tax-inclusive, but they don’t seem to be separating it. This is an example transaction from the Paypal Activity section with a GST charge:

Total amount:
$23.07 USD
Fee amount:
-$0.90 USD
Net amount:
$22.17 USD

Item amount:
$20.97 USD
GST:
$2.10 USD
Shipping:
$0.00 USD
Handling:
$0.00 USD
Quantity:
1

But when I check the QIF transaction:

!Type:Cash
D15/10/2017
T22.17
LDirect Credit Card Payment
SDirect Credit Card Payment
23.07 SFee -0.90
CX
MThe S… (eBook):…
P CUSTOMER NAME
^
!Type:Cash
D15/10/2017
T-1.10
LReserve Hold
SReserve Hold
$-1.10
SFee
$0.00
CX
MThe S… (eBook):…
P
^

Does that mean I’ll have to manually modify all transactions that include GST by adding using the “Add line” option under “Account” in the edit transaction screen, insert the taxed amount and assign the “GST 10%” tax code? Is there any other way of bulk editing these transactions?

I think that’s correct, they just pass on the tax inclusive information in the reports.

It’s good to know then, I’ll have to work only with the QIF’s once I understand how to apply those GST amounts to certain transactions.

No. Just select the tax code at the end of the transaction line item. (Presuming you have set up the 10% GST tax code.) It looks like they are reporting the tax-inclusive amount. So also check the box to be tax-inclusive.

Yes, but not by adding a line - select the tax code and tick the “tax Inclusive” tick box and Manager will do the calculations
0 Tax setting inc-exc

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@Mateo, to be clear, my “No” applied to your entire question about using the add line option. So I am in agreement with @Brucanna’s “Yes, but not by adding a line.” We have given you the same answer to your two-part question, worded in different ways.

Thank you both for your response and thanks for clearing that up Tut.

I now understand how that’ll work. My only issue is finding where exactly is the “Amounts are tax inclusive” tickbox. I’ve created the GST 10% Tax code which I’ve successfully used with some expenses but on my “Edit Transaction” screen I can’t seem to spot any tickbox. I checked the guide but there’s no hints there either. Here’s a screenshot:

My mistake. The tick box exists only on sales and purchase invoices. Those are tax-exclusive by default and require you to check the box to make them tax-inclusive.

Receipts and payments are always tax-inclusive ( which I have suggested should be remedied). And those are what you are dealing with when importing bank statements. So you won’t need to check the box, just assign a tax code. Be sure to understand, when dealing with tax-inclusive transactions, that you must enter the full amount paid or received. Manager will calculate the effective amount of the line item and separate out the tax.

Sorry to have led you astray.

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No problem Tut, you’ve been really helpful in guiding me through this software’s functionality and better understanding the issue at hand.