UK PayPal fees invoiced to us from Contractor

[davidmjones1]

Hi,

We receive invoices from contractors that relate to COGS which we pay using PayPal. On the invoice the contractor charges an additional 5% to cover the PayPal fee they incur.

Does this 5% PayPal fee they invoice us for also go to COGS? I assume it does since it is a cost they are invoicing us for. It is not a PayPal fee my company has directly incurred.

Thanks a lot!

 

[Cheaper Accountant]

Charge the full invoice value to COGS. You don't need to seperate anything here.

 

[davidmjones1]

great thanks, can you help with my other PayPal question in regard to the forex movement?

 

[davidmjones1]

Thanks a lot