PayPal and Accounting in Poland

Hello guys,

I set up a PayPal account for Polish company.
As you probably know PayPal is charging 2.9 % as a fee + 0.80 fixed fee. The main problem is I can only receive funds in my local currency.

Say if I did a job and get paid 100 EUR, PayPal will exchange this with their own exchange rates (which is very low by the way) and then send the money in PLN (Polish Zlote - my local currency-)

Problem starts here for accounting;

  1. How can I show the PayPal fee?
  2. I have to create invoice for 100 EUR but I receive completely different currency in my bank account.

For example;

Let’s say 1 EUR is 4.25 if I’ll exchange it in an exchange office
PayPal’s rate is 4.14

I got paid 100 EUR (B2B) and after PayPal fees, I’ll receive 96.30 EUR in my PayPal account. When I want to withdraw this money, I have to exchange it to PLN so 96.30 EUR * 4.14 so 398.68 PLN will be in my bank account.

This is the confusing part. How can I show the PayPal fee and the received amount to my bank account. How can I possibly show the right amounts so I’ll not pay wrong tax?

You send together with payments the paypal statements.
When that is happening, local tax authorities do what they have to do for the processor fees.

Thank you for your reply. I thought so but still I am not really sure my accountant doesn’t sure how to calculate taxes for PayPal as my accountant never had this way of working before.

Change Accountant.

1 Like

You have a simple easy to follow solution:

  1. Setup a bank account in USD.
  2. Setup you account main currency in USD:
  3. You should be able to withdraw in USD now without conversion fees.
  4. You can get money in your local currency based on local conversion rates.

Hope this helps. :wink:

Well, I rather work with my accountant and get over with this problem. Everyone needs to learn :slight_smile:

I don’t think this will work as PayPal states sending money to bank account will be only with the local currency. I couldn’t even add EUR bank account. I could only add PLN (Polish Zloty - my local currency- ) bank account.

Have you get around this before?

Have u added credit card before?