For those Australian partners who are registered for GST.
Have you worked out how to code this in your accounting software yet?
I have uploaded an example, and my guess is that the net amount which is deposited to my account is subject to gst. But I'm not sure. As SG take the payment, I wonder if the GST on the full amount is already paid?
Hi @Urszula Richards , tax can be incredibly complex and confusing!
So I think if you added GST/tax to your plans (e.g. the $44 is $40 plus 10% GST) then your customer has paid their GST liability and you then pass that on to the government so yes you would need to record the $12.93 in your accounting package with $4 of it as tax. You might prefer to export/import your Stripe invoices (so the full one the customer pays $44) and record that as revenue itemising the $4 tax and then also account for the fees (Siteglide, Stripe etc).
This definitely needs a bit of thought and discussion analysis to make the process as automated and simple as possible. I would try to leave the accounting records in Stripe if you can and do a monthly payout from Stripe with 1 invoice that itemises the tax? That's what we do.
Hmm will need to put more thought into this. Because stripe sends the funds (in this example $12.93) into my bank account and Xero then pulls that transaction into its feed for reconciling, I need to somehow work out how this gets coded.
Have any other AU partner figured this out? I need to devote a bit of brainspace to this. I'm starting to think partner billing may solve this, and then we handle the billing / tax.
Hi @Urszula Richards I was looking at something related and started to wonder this too. In Stripe you can find the 'invoice' that the customer receives (or at least the breakdown) It should look something like this.
Above, you can see that, as far as the client is concerned, We (Australian Entity) are invoicing them for the full amount. BUT we don't receive this in the bank account, instead we get this:
which helps to show that we have:
Which also means I have to review my margins for my plans. :-) (Hopefully we'll get the option to edit plans soon.)
Another point the above breakdown raises for me, my 'Stripe Fee's' are $3.63 on the $20.34 revenue, or 17.82% of my revenue. Ouch! Whoever said Stripe was cheap?
I have not even begun to work out how that will work in Xero. I think I'll see if the Xero integration is any good for Stripe.
I tried to reply a few times, but can't get my head around it! I think Luke is right, which means how I have been calculating my profit margins is wrong. Need to revisit it :)
I can't avoid the Xero thing as it is aready pulling it in from my bank feed so I have to code it somehow.