https://ttlc.intuit.com/community/self-employed-group/discussion/vat-collected-through-paypal-is-reported-on-1099/01/3065646#M10456 <P>My small business makes money from an online store that sells to people located in the European Union. The site automatically calculates VAT tax and adds it to the price of any item I sell. I get paid directly through PayPal from each customer and then once a quarter I send the VAT I collected back to the online retailer.<BR /><BR /></P><P>I understand that VAT is not income, but when it goes through PayPal it is included on their 1099. What is the correct way to deduct this amount?<BR /><BR /></P><P>For TurboTax 2022 I entered it as an expense under "Taxes &amp; Licenses" category. Is this the correct location to report this tax?</P> Tue, 24 Feb 2026 06:28:50 GMT ickythus 2026-02-24T06:28:50Z https://ttlc.intuit.com/community/self-employed-group/discussion/vat-collected-through-paypal-is-reported-on-1099/01/3065646#M10456 <P>My small business makes money from an online store that sells to people located in the European Union. The site automatically calculates VAT tax and adds it to the price of any item I sell. I get paid directly through PayPal from each customer and then once a quarter I send the VAT I collected back to the online retailer.<BR /><BR /></P><P>I understand that VAT is not income, but when it goes through PayPal it is included on their 1099. What is the correct way to deduct this amount?<BR /><BR /></P><P>For TurboTax 2022 I entered it as an expense under "Taxes &amp; Licenses" category. Is this the correct location to report this tax?</P> Tue, 24 Feb 2026 06:28:50 GMT https://ttlc.intuit.com/community/self-employed-group/discussion/vat-collected-through-paypal-is-reported-on-1099/01/3065646#M10456 ickythus 2026-02-24T06:28:50Z https://ttlc.intuit.com/community/self-employed-group/discussion/re-vat-collected-through-paypal-is-reported-on-1099/01/3065660#M10457 <P><SPAN>&nbsp;Is this the correct location to report this tax?&nbsp; &nbsp; It is the place.</SPAN></P> Wed, 17 May 2023 17:30:50 GMT https://ttlc.intuit.com/community/self-employed-group/discussion/re-vat-collected-through-paypal-is-reported-on-1099/01/3065660#M10457 ee-ea 2023-05-17T17:30:50Z https://ttlc.intuit.com/community/self-employed-group/discussion/re-vat-collected-through-paypal-is-reported-on-1099/01/3065703#M10458 <P>Thank You!</P> Wed, 17 May 2023 19:33:45 GMT https://ttlc.intuit.com/community/self-employed-group/discussion/re-vat-collected-through-paypal-is-reported-on-1099/01/3065703#M10458 ickythus 2023-05-17T19:33:45Z