1. Marketplace VAT Responsible Sales
We’ve introduced a new “Marketplace VAT Responsible” category in the Accounts & Taxes Wizard.
This allows TikTok Shop sales where the marketplace is responsible for VAT to be segregated and mapped separately.
How it works
Link My Books will now automatically detect when TikTok is VAT responsible for an order.
A new Marketplace VAT Responsible category is shown in the transaction tree.
When you go back through the Accounts & Taxes Wizard, you’ll see this new category and can set the appropriate tax rate.
Default mapping: Zero Rated Income.
👉 Action Required:
Please revisit the Accounts & Taxes Wizard to apply the new mapping.
⚠️ Important: If you’ve made any custom mappings or other advanced settings, don’t run the wizard on your own. Instead, reply to the email we sent you or contact support, and we’ll help apply the change without overriding your existing setup.
2. Affiliate Commission Tax Rate
We’ve also added support in the wizard to allow UK-based sellers to set a separate tax rate for Affiliate Commission fees.
Why this matters
TikTok Shop does not provide VAT invoices for affiliate commissions. This is because these fees are treated as pass-through costs to the influencers promoting your products — and since those influencers may not be VAT registered, whether these fees should incur VAT is a grey area.
To give you control:
We’ve added a dedicated Affiliate Commission tax rate option in the wizard.
Default mapping: Zero Rated Expenses.
You can select your own rate if your accountant advises differently.
Affected sub-categories
The following sub-categories in the Advertising mapping category will now use the Affiliate Commission tax rate you set:
Affiliate commission amount before pit
Affiliate ads commission
Affiliate partner commission
Affiliate commission
Affiliate commission deposit
Affiliate commission release
👉 Action Required:
Please revisit the Accounts & Taxes Wizard to apply the new mapping.
⚠️ Important: If you’ve made any custom mappings or other advanced settings, don’t run the wizard, you can either:
Update these sub-categories directly on the mapping page, or
Contact our support team for guidance.
FAQ
Q: What are Marketplace VAT Responsible sales?
These are TikTok Shop orders where the marketplace (TikTok), not the seller, is responsible for collecting and remitting VAT.
Q: Will these new tax rates be applied retrospectively?
No — they’ll only apply to un-sent settlements and any new settlements generated after the change.
Q: Do I need to rollback any settlements that have already been sent?
Yes — if you realise your previous mappings were incorrect and you have settlements that are affected, you should rollback and resend those settlements after updating your tax mappings.
Next Steps ✅
Revisit the Accounts & Taxes Wizard to review and apply these new mappings.
If you use custom mappings, reply to the email we sent you or contact support before making changes.
Going forward, your TikTok Shop transactions will be mapped more accurately for VAT reporting.
If you have any questions about this article or feedback on how we could make it better please reach out to the support team via the blue chat icon on the bottom right of the page or via email to [email protected].