If you have the Amazon VAT Calculation Services turned on in your Amazon Seller Central Account there should be a number of transaction types showing in Tax under the Mappings page.

Please Note: If this feature is enabled the separated tax lines are 100% VAT and the associated sales, shipping, and gift wrap lines are net amounts excluding VAT. These must be coded appropriately to your accounting system depending on whether you are lodging VAT returns internally or externally from your accounting system.

OPTION 1. VAT returns from QuickBooks/Xero

When you have VAT calculation service enabled and are completing your VAT returns from QuickBooks, you will need to "wrap" the amounts that fall under the Tax category back into the income accounts (so as to gross the income back up to be VAT inclusive) and then apply the applicable tax rate in the mapping.

Example:

In the ‘Sales' category, you apply the 20% (or applicable) VAT Rate to Order ItemPrice Principal.

In the 'Tax' category, you would need to mirror this. So, the Order ItemPrice Tax line for sales would need to be mapped to that same sales account with the same tax rate applied. So you would apply 20% (or applicable) VAT Rate to Order ItemPrice Tax.

When this is sent to your QuickBooks/Xero the Net amount plus the VAT amount hits the account and the accounting system can strip out the correct VAT amount. In the example above the VAT rate of 20% will be stripped out which should match the VAT Amazon has calculated.

Then, you would need to repeat this 'mirroring' process for all the rest of the lines that you see are separated out in the Tax category of your Mappings page.

The below mappings is an example mirror the VAT rates.

Please Note: Not all of these transaction types may be present in your settlements and shown in your Mappings page.

Transaction Category

Transaction Type

Xero Tax Code

QBO Tax Code

Gift Wrap

Order ItemPrice GiftWrap

20% (VAT on Expenses)

20.0 % S

Gift Wrap

Refund ItemPrice GiftWrap

20% (VAT on Expenses)

20.0 % S

Gift Wrap

Chargeback Refund ItemPrice GiftWrap

20% (VAT on Expenses)

20.0 % S

Promotions

Order Promotion Principal

20% (VAT on Income)

20.0 % S

Promotions

Refund Promotion Principal

20% (VAT on Income)

20.0 % S

Sales

Order ItemPrice Principal

20% (VAT on Income)

20.0 % S

Refund

A-to-z Guarantee Refund ItemPrice Principal

20% (VAT on Income)

20.0 % S

Refund

Chargeback Refund ItemPrice Principal

20% (VAT on Income)

20.0 % S

Refund

Refund ItemPrice Goodwill

20% (VAT on Income)

20.0 % S

Refund

Refund ItemPrice Principal

20% (VAT on Income)

20.0 % S

Shipping Income

A-to-z Guarantee Refund ItemPrice Shipping

20% (VAT on Income)

20.0 % S

Shipping Income

Chargeback Refund ItemPrice Shipping

20% (VAT on Income)

20.0 % S

Shipping Income

Order ItemPrice Shipping

20% (VAT on Income)

20.0 % S

Shipping Income

Refund ItemPrice Shipping

20% (VAT on Income)

20.0 % S

Tax

A-to-z Guarantee Refund ItemPrice ShippingTax

20% (VAT on Income)

20.0 % S

Tax

A-to-z Guarantee Refund ItemPrice Tax

20% (VAT on Income)

20.0 % S

Tax

Chargeback Refund ItemPrice ShippingTax

20% (VAT on Income)

20.0 % S

Tax

Chargeback Refund ItemPrice Tax

20% (VAT on Income)

20.0 % S

Tax

Order ItemPrice GiftWrapTax

20% (VAT on Expenses)

20.0 % S

Tax

Order ItemPrice ShippingTax

20% (VAT on Income)

20.0 % S

Tax

Order ItemPrice Tax

20% (VAT on Income)

20.0 % S

Tax

Order Promotion TaxDiscount

20% (VAT on Income)

20.0 % S

Tax

Order Retrocharge ItemPrice ShippingTax

20% (VAT on Income)

20.0 % S

Tax

Order Retrocharge ItemPrice Tax

20% (VAT on Income)

20.0 % S

Tax

Refund ItemPrice GiftWrapTax

20% (VAT on Expenses)

20.0 % S

Tax

Refund ItemPrice ShippingTax

20% (VAT on Income)

20.0 % S

Tax

Refund ItemPrice Tax

20% (VAT on Income)

20.0 % S

Tax

Refund Promotion TaxDiscount

20% (VAT on Income)

20.0 % S

Tax

Refund Retrocharge ItemPrice ShippingTax

20% (VAT on Income)

20.0 % S

Tax

Refund Retrocharge ItemPrice Tax

20% (VAT on Income)

20.0 % S

Once you have completed the mappings, you must Reprocess each of the applicable settlements before sending the settlement to your accounting system.


OPTION 2. VAT Returns Outside of QuickBooks/Xero

If Amazon VAT Calculation service is enabled and the VAT is lodged externally from your accounting system the solution is simple.

taxomate will pick up the tax lines separately and they can all be mapped to the 'Amazon Sales Tax Collected' Liability account with a No Tax or Tax Exempt rate applied.

When you run a balance sheet report the amount sitting in this liability account is the amount that should be remitted to your tax authority for the time period.

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