Taxomate sets up the VAT codes below during Quick Setup if you select UK registration. More information.
You can still use the method below. It is easier to use Quick Setup.
STEP 1. In Taxomate, open Settings and select VAT tracking (under Accounting setup).
STEP 2. Under Tracking, select Track VAT by jurisdiction. The page then shows Registration and Grouping. A box, Taxomate also sets these for you, lists the settings that turning on VAT tracking changes (for example Group income and expense account types: Off → On).
STEP 3. Under Registration, check your VAT registration countries. If no countries are saved yet, Taxomate ticks the countries of your connected marketplaces. Untick a country if you are not registered there. Match the registrations you entered for Amazon's VAT Calculation Service.
STEP 4. Under Grouping, choose how to Assign each sale by: Amazon VAT jurisdiction (the default: the jurisdiction Amazon reports for each sale) or Country of arrival (the country the order was shipped to).
STEP 5. Select Review and save, read the review, and confirm. If you leave the page before you save, Taxomate asks Leave without saving? first.
STEP 6. Open Accounts and taxes. Select Mapping settings and turn on Tax code mappings.
👉 With VAT tracking on, VAT is merged back into the sales, refund, promotion, gift wrap and shipping income transaction types, so you can use your accounting software's tax codes.
STEP 7. Open the Sales row. You see a group for each jurisdiction you registered, and an export jurisdiction for orders shipped outside the UK or EU. Open a group to see its transaction types.
STEP 8. Taxomate groups transactions from Amazon's VAT Transactions Report by who is responsible for the VAT (Amazon or you), whether VAT was calculated, and whether the order was B2B.
👉 Taxomate imports the VAT Transactions Report, so the types can take a few hours to show after you turn VAT tracking on.
👉 Taxomate shows only the types in your report. For example, with no B2B orders in the UK, you do not see the B2B type.
STEP 9. The export type changes with whether the order left the UK or the EU.
STEP 10. Your registered jurisdictions also appear under Refunds, Shipping Income, Gift Wrap and Promotions. Select the tax code for each.
STEP 11. When you finish, select Review and save, and confirm.
👉 Select Rebuild on every settlement you want the changes to apply to (and send it again if it is sent). The changes apply by themselves to settlements you import later.
IMPORTANT: Taxomate uses the VAT Transactions Report from Amazon. Amazon releases it in the first days of the following month, for the previous month. Taxomate requests it on the 4th and again on the 6th. Do not send settlements until the report is imported. A settlement waits as Awaiting VAT. More information.
STEP 12. See an example of VAT tax code mappings for Amazon UK. Ask your accountant which VAT code to use.
