VAT on bank services from bank auto download
MontiCo
Member Posts: 12
Hello,
I am dealing with a nuance with my bank in the UAE.
Since Jan 1, 2018 VAT (5%) has been introduced. Since then, my business bank charges me the monthly banking fee as a separate line from the VAT. So I get two transactions from automatic download: 100 for banking fees, 5 for VAT / sales tax on banking fees.
Wave sees the "5" as "uncategorized expense" and when I try to categorize the 5 amount into VAT receivable (as it would be recoverable), such account is not allowed.
Hence I am stuck with an expense and inabiity to efficiently transfer it into my sales tax balance.
Can anyone advise how I can go about this?
Many thanks for any help in advance!
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Comments
Hey MontiCo,
It's not possible to categorize the entire 5$ transaction as VAT in the Transactions page, so we'll have to use a bit of a workaround here.
Click "Add Expense" in the Transactions page, and add a new $105 expense transaction set to the same date and account that you mentioned earlier. Include the 5% VAT that you mentioned earlier.
Once this is done, delete the bank-imported transaction, as it will have already been accounted for!