PayPal transactions and VAT

Discussion in 'PayPal' started by LakiCG, Jul 29, 2011.

  1. #1
    Hi,

    I'd like to be advised how to treat some financial transactions through my business PayPal account. I'm gonna give an example for better understanding.

    I'm a small online reseller in UK whose supplier is from France. My supplier hasn't charged VAT (all invoices issued by the supplier are VAT free).
    There have been few purchasing paid from my PayPal account to the PayPal account of the supplier. Also my customers paid me that stuff by using PayPal (they've been charged VAT). It means that money hasn't gone through the business bank account (end customer--PayPal-->My company--PayPal-->Supplier).

    I'd like not to pay VAT in this case because my small profit. Would you advise me not to record these transactions in my accounting books? Is safety to save VAT in this "shaky way"?

    I understand that PayPal should be treated as another bank account is the income made through this account is the subject of VAT submission.

    Thank you in advance.
     
    LakiCG, Jul 29, 2011 IP