Tax is displayed in the Mappings page if you have the Amazon VAT Calculation Services turned on in your Amazon Seller Central Account. This service generates a separate transaction line for the taxes on revenue transactions.
If this feature is enabled please note that 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 A. VAT returns from QuickBooks/Xero
First, set your invoice type to Sales Invoice in Settings > Invoice.
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 to gross the income back up to be VAT inclusive) and then apply the applicable tax rate in the mapping.
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.
We have found mapping the following to your applicable VAT rate usually works:
Once you have completed the mappings, you must Reprocess each of the applicable settlements before sending the settlement to your accounting system.
OPTION B. 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 fairly simplistic. 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.