Amazon account and tax rate mappings for Canadian businesses

Link My Books exists to make accounting for your Amazon (and other e-commerce channels) sales, refunds, fees and sales tax easy and accurate.

That's why as part of our quick and easy setup wizard, we'll provide you with some default accounts and tax rates to confirm.

This means that you can be confident your bookkeeping is clean and accurate. Trust me, your accountant will thanks you for it.

Amazon has hundreds of different transaction types, so to keep things simple we group them into 11 top level categories:

If you accept our default accounts during setup we'll create one account for each of these different categories and add them to your existing chart of accounts in Xero or QuickBooks.

Here are our default accounts:

Here are our default tax rates for sales revenue for Canadian businesses:

Here are our default tax rates for fees & other transactions for Canadian businesses:

Link My Books separates your sales tax collected and sales tax withheld transactions into the Amazon Sales Tax category.

We do not split this category by province. We separate the sales tax into a single account on the Balance Sheet, so if you have multiple sales tax permits you will need to use a third party to to calculate and file your sales tax liabilities.
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Once you have paid your sales tax liabilities you can account for those payments to the Amazon Sales Tax account to reconcile off the balance.

If you do not hold any sales tax permits then the Amazon Sales Tax account will show sales tax collected and then sales tax withheld line items where Amazon has collected and remitted the sales tax directly to the tax authorities. These should cancel each other out and therefore the account should always show a nil balance.
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