Now, I’ve announced some exciting new features in my time, but this is possibly the best – yes, we have added two new columns for you to select when downloading payment reports. And what snappy column titles they are:
So there you have it, Estimated VAT and Net Donation Minus Estimated VAT. A real cool addition to the column selections.
But seriously, this is an important update, one that many of you asked for. Why? Well, it’s all to do with the way we transfer money to you.
As you know, we charge a 5% transaction fee on every donation and VAT is applicable on that amount. But we only calculate the VAT for the total fees for each payment we make to you, not on each individual donation.
In the Finance Reports section of the Charity Account, you can see a high level breakdown of the Gross and Net payments as below (with amounts erased, obviously):
You can download a PDF giving you a one page invoice detailing the total amounts and deductions when you click on view details but you can now see that breakdown in the detailed reports for each payment too.
So if you need to attribute VAT on each donation, or record net donation without VAT (depending on your financial systems), you can easily do so once a payment report has been created.
But remember, these figures are only estimated per donation since the actual VAT is calculated on the total fees taken – dividing the total VAT to all the donations will inevitably cause some small rounding errors.
So there you are, that was me trying to make VAT exciting. Now I know how Adam Hart-Davis feels…