***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.
 

Important: The below country grouping method applies to European Amazon seller accounts only.

Link My Books uses country grouping to set different tax rates based on where the sale was shipped to.

During setup you would have selected two VAT rates, one for UK vatable sales and one for non UK vatable sales.

The four country groups are:

UK
EU VAT Registered Countries
EU Non VAT Registered Countries
Rest of World

  • We would apply your UK rate to sales going to the UK group always.
  • We would apply your UK rate to sales going to the EU Non VAT Registered Countries group as long as the sale was from a marketplace which is not one of your EU VAT Registered Countries.
  • We would apply your Non UK rate to sales going to the EU Non VAT Registered Countries group if the sale was from a marketplace which is one of your EU VAT Registered Countries.
  • We would apply your Non UK rate to sales going to the Rest of the World Group always.
  • We would apply your Non UK rate to sales going to the EU VAT Registered Countries group always.

If you want to ensure its 100% perfect, but don't mind waiting each month until your Amazon VAT Transactions Report is available, we suggest doing it this way...

On the Account & Tax Mappings page set Zero Rated Income as your tax rate for all income related transactions (Amazon sales & Amazon Refunds) and then use the UK VAT figure from the Amazon VAT Transactions report we show within LMB to create a manual journal for your UK VAT on income each month.

When using this method we suggest you speak with your accountant first as manual journals can be tricky.

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