Beta: The Temu integration is in early beta. Some details may change before full release. If anything looks wrong, message our support team.
Two kinds of Temu sale
For VAT purposes, your Temu sales fall into two groups:
Sales where you're responsible for VAT. You charge VAT and include it in your own VAT return.
Sales where Temu is responsible for VAT. For some sales, for example where goods ship from outside the UK, the rules make Temu (the marketplace) collect and pay the VAT to HMRC. This VAT should not appear in your VAT return.
Link My Books keeps these two apart. Temu-collected VAT is shown on separate Sales Tax (marketplace) lines, so it stays out of your VAT return.
Default tax rates
20% VAT on income for UK sales where you're responsible for VAT.
Zero rated where Temu is responsible for VAT, or the buyer is outside the UK.
20% VAT on expenses for Temu fees.
You can change any of these in Accounts & Taxes.
[Screenshot: Temu tax rate settings in Accounts & Taxes]
VAT adjustment line
Temu's own reports sometimes round VAT slightly differently. When that happens, a small VAT adjustment line keeps your summary accurate. If the difference is unusually large, the month is held back and our team investigates before you can send it.
Not VAT registered?
Choose No VAT (or your ledger's equivalent) for your Temu lines in Accounts & Taxes.
Check with your accountant
VAT rules depend on your business and where you ship from. We recommend confirming your Temu tax rates with your accountant.