Yes, that’s what I thought too, but the others said that it cannot be treated as my expense, because the bank charge will not be printed on my bank statement, so instead of printing $2 as the expense in my bank statement, the bank will just printed $1098 when they are the one who deducted the payment? But surely the tax authority should understand this right, so it should be legal to consider the $2 as my expense?
And if this can be done, that’s why I suggest to add bank charge (if any) field on the payment menu,
If discount field substracted the amount before VAT on invoice, then bank charge will substract the total payment
If a bank charges $2 for a transaction surely this will be shown as charge on the bank statement, they have to disclose this to the tax authorities as well. If for whatever reason it is not show as a separate charge by the bank on your statement then just a line to your receipt and put -2 and add to a bank charges accounts.
So you create a receipt that would have one line entry of $1,000 +$100 VAT for product sold and you add another line entry of $ -2 (minus 2) for the bank charges.
@iman, have you thought about using a Credit Note for the amount deducted by your customer. You are able to apply the amount to an appropriate expense account and select the VAT code applicable. It is easily done if you select “copy to New Credit Note” from within the sales invoice view screen.
