paypal purchases and tax

[confused]

Hi all,

Just a quick one, if I buy something for my business and use paypal to pay, is the paypal invoice ok to use and log as a reciept to be put against tax?

Thanks

CALV

 

[Joyous]

In a word - yes, but even better will be an invoice from the supplier.

Regards

Joy

 

[Bill.Webster]

Hi Calv,

I'd agree 100% with Joy's advice, but thought I'd better add my tuppence worth re the VAT angle.

If you are VAT registered, then you will not be able to claim back input VAT on the strength of a Paypal invoice. A number of suppliers who trade on Ebay are VAT registered, but it's not always easy to get a proper VAT invoice out of them i.e. one that clearly shows date, supplier details, item details, price, cost, VAT, total, and VAT registration number.

For small value purchases it is not a big deal - just don't claim any input VAT on the purchase. But for more expensive purchases make sure the supplier commits to providing you with a VAT invoice. In such circumstances it's probably best to withhold the PayPal payment until you actually have the VAT invoice in your sweaty mitts!

Good Luck,

Bill Webster