Icon credit: PayPal
Quarterly Tax Reporting and PayPal
As Discogs has transitioned to the new PayPal payment platform, we’ve spoken to several EU sellers about invoicing and tax reporting. Many professional sellers previously relied on the monthly invoice to track and report quarterly taxes. While Discogs does provide most of the data in the Marketplace Transactions Export that was previously available in the monthly invoice, we’re developing an option that makes it easy to track and export sales and tax information in a format appropriate for accounting, bookkeeping, and tax authorities.
Accounting for Sales, Refunds, Taxes, and Fees
We understand many professional sellers have grown accustomed to using the old monthly invoice for accounting purposes.
Beginning early March 2022, Discogs will provide a new transaction file that will include all of the information required by various international tax authorities that meets accounting, VAT, and GST reporting requirements. The exportable file will include options to track and reconcile transaction details to meet business needs with:
- Filterable transactions (for example: by day, week, month, or quarter)
- Clearly labeled sections and columns
- The ability to simply track and reconcile all aspects of Discogs transactions (for example: order details or payment split between seller and Discogs)
Some sellers have been using automated scripts to download their monthly Discogs invoices directly into their accounting systems. Sellers will need to update any automated scripts to facilitate the new transaction export file format and content once it is ready.
Until the new exportable file is available and seller-developed automated scripts have been updated, sellers will need to manually record Discogs sales data into their accounting and other systems.
No More Monthly Discogs Invoices
Sellers who have onboarded to the new PayPal solution no longer have the need to remit a monthly payment to Discogs for seller fees, fee VAT, and other taxes collected on behalf of Discogs. As a result, Discogs will no longer send a monthly invoice. After onboarding to the new PayPal solution, sellers will receive a final monthly Discogs invoice to cover any orders processed through the previous legacy system.
Discogs Takes Care of Taxes
The new Discogs payment platform saves you administrative time, allowing you to focus on your business.
Fees, VAT, and other taxes (for example: import supply of goods) are deducted when a buyer submits payment — the money collected from each Discogs transaction is for the seller to keep. Sellers will need to track and report on electronic service fee VAT charged by Discogs on behalf of the seller.
For additional details about the new PayPal payments solution and its benefits, learn more here.
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