How to transfer money between two bank accounts (in two different banks) and indicate VAT?
Use an inter account transfer. But why would transfer of money between two of your bank accounts be taxable?
@Tut “Inter account transfer” tab does not show a field for entering VAT.
No, not transfer of money between two of bank accounts is taxable. The local transfer charge (SAR 5) is taxable.
I need such a transaction because the source bank issues a debit card for a large amount of money, and the target bank for free.
I need to use debit card for petty expenses and internet purchases.
@alosultan, your last post does not make sense.
The inter account transfer form does not include fields for tax codes because transfers of money between two bank accounts you own are not taxable events in any jurisdiction. You have neither sold nor purchased anything. It is like moving money from your right pocket to your left pocket.
The transfer fee that a bank may impose is a separate transaction. For that, enter a payment. Post a line item to an expense like Bank fees. There, you will be able to apply a tax code.
I do not understand either of these statements. Are you saying the transfer is made by the source bank issuing a debit card to the receiving bank? Or are you saying you have set up a debit card as a bank account? If the latter, is it a prepaid debit card?
An ordinary debit card is not set up as a bank account in Manager. It is just a method for withdrawing money directly from some bank account. A prepaid debit card can be set up as either a bank account or a cash account in Manager. Either way, it can be refilled with an inter account transfer.
Regardless, the only taxable event involved is your bank’s charging of the fee. And, as I already said, that must be entered as a separate payment transaction, because it is between you and the bank. Inter account transfers are between your business and itself.
I have 2 bank accounts in two different banks, so they charge a certain amount for the transfer of money.
Thank you. Good idea.
Sorry, I mean ATM card for the second bank account (my personal account), to which I want to transfer money.
I will say it again: the transfer of your own money between accounts you own is not what is taxable. The taxable event is a bank charging you a fee for their part in handling the transaction. Your payment of that fee gets taxed on the payment form. Your inter account transfer does not.
I still do not understand. Did you actually transfer money between bank accounts? If so, an ATM card has nothing to do with that. And an ATM card is just an access method that enables you to make deposits and withdrawals from a bank account at a machine. Obtaining the card involves no accounting transactions and no tax. Are you saying you want to transfer money from one bank to another because the receiving bank’s ATM fees are lower (or non-existent)? If so, that still has no accounting or tax impact.
You seem to be mixing questions about how to record payment of bank fees and associated tax with your reasons for making an account transfer. I have explained twice about how to record the fees and tax. Your reasons for the transfer are irrelevant.
So when transferring money between bank accounts where the bank changes a fee for he service. This is entered into Manager by splitting the transaction into two Manager transactions
The money which gets to the second account
And also a fee transaction
I suppose the convenience to having a single Manager transaction for inter account transactions vs splitting out the components would depend on how the data is received / entered and the reporting requirements (who is bearing the cost of the fee; the business or is it passed on to the customer).
These considerations maybe important when Manager adds support for bank import of inter account transfers and the associated transfer amount matching. Ability to convert two transactions to a Inter Account Transfer
Thanks @Tut and @Patch for your answers. I chose Patch’s answer as the accepted solution due to its clarity.
@Patch gave you exactly the same answer about the transfer and fee I did. There was no choice to be made.
Other than adding illustrations, the rest of the post was about speculation that has gone on concerning potential future changes for inter account transfers and bank statement imports.
The rest of my posts have been me trying to understand your comments about debit cards and ATM cards, which still seem entirely disconnected from your questions about transfers, fees, and VAT.