DISCLAIMER
The team at Link My Books are happy to provide users with technical assistance in applying tax rules to their Link My Books setup. We are not Tax Advisors and so our advice and suggestions on the application of tax rules cannot be construed as tax advice. We highly recommend that users seek advice from qualified accountants for their tax compliance.

Link My Books default accounts for Amazon

Link My Books default tax rates for Amazon Europe accounts

Link My Books default tax rates for all other Amazon region accounts

Responding to HMRC compliance checks about Amazon fees

💡Good to know

You can, of course, choose any accounts you like during setup. Plus you can even dive deeper into the sub-categories contained within these top level categories. You can learn more about fine tuning your account mappings in this help article.

⚠️ Can't see LMB9d: Amazon Deferred Balances in Xero or QuickBooks?

The LMB9d account is used when you have Amazon Deferred Transactions enabled on your Link My Books account. If the account is missing from your chart of accounts in Xero or QuickBooks during mapping, this is usually because the connection between Link My Books and your accounting software needs to refresh its cache of your chart of accounts. You can do so via Settings > Account Settings > Refresh Xero/QuickBooks Cache, which will pull LMB9d through into the mapping dropdown. If the account still does not show, then please contact [email protected]

IMPORTANT

Amazon changed the legal entity they invoice their fees from for UK sellers in August 2024. During setup we'll give you the option to set tax rates for fees for pre and post August 2024.

💡Why are FBA Fees (International Orders) reverse-charged post-August 2024?

Following the August 2024 change, Amazon invoices different fee types from different legal entities. The post-August 2024 defaults above are based on the invoicing-entity treatment Amazon has adopted for most UK sellers:

- FBA Fees (Domestic Orders) are treated as a standard UK supply — 20% VAT on Expenses.
- FBA Fees (International Orders), Amazon Storage Fees (EU), and Amazon Advertising Costs (EU) are treated as cross-border services from a non-UK establishment — Reverse Charge Expenses (20%).

These are defaults only and are presented to you during the Accounts & Taxes setup wizard for you (or your accountant) to confirm. If your accountant determines a different treatment is appropriate for your circumstances, you can change the tax rate in the Accounts & Taxes Wizard, then roll back and resend the affected settlements so they post with the corrected rate.

💡Good to know

Again, you can change these tax rates to suit your business if you wish to do so - they are just defaults. You should only change tax rates on the Accounts & Taxes Wizard and not on the Accounts & Tax Mappings page.

💡Good to know

Until you provide Amazon with your VAT number they will charge you 20% VAT on your seller fees and advertising fees, so ensure you enter your VAT number on all Amazon Seller Central for each region.

⚠️ Final responsibility sits with you and your accountant

Link My Books provides the post-August 2024 defaults as a starting point based on what most UK VAT-registered Amazon sellers use. Whether any particular fee line should be treated as a reverse charge, as standard 20% VAT on Expenses, or otherwise — especially where Amazon invoices from a UK branch under Section 7A(5) — is a judgement that sits with your accountant or tax adviser. Always cross-reference our defaults against your actual Amazon VAT invoices before responding to HMRC.