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.
Introduction
VAT or "Value Added Tax" in the EU is complex. Combine that with the fact that Amazon reports are also complex and that you need to use more than one type of report to work out your UK or European VAT and most sellers run for the hills.
At Link My Books we have an excellent knowledge and understanding of UK and EU VAT and although we are not your tax advisor, we are here to make things as easy and efficient as possible for you and your accountant to get to grips with your VAT liabilities on your Amazon sales throughout Europe.
How does Link My Books work out VAT on sales revenue?
Link My Books separates all sales revenue income into the following 6 groups:
Standard Rated Goods Shipped to UK - Seller Responsible for VAT
Reduced Rated Goods Shipped to UK - Seller Responsible for VAT
Zero Rated Goods Shipped to UK - Seller Responsible for VAT
Sales shipped to UK - Marketplace Responsible for VAT
Sales shipped outside UK - Dispatched from GB
Sales shipped outside UK - Dispatched from outside GB
Standard Rated Goods Shipped to UK - Seller Responsible for VAT
Sales which have been delivered to customers located in the UK, where the product was standard rated for UK VAT.
Reduced Rated Goods Shipped to UK - Seller Responsible for VAT
Sales which have been delivered to customers located in the UK, where the product was reduced rated for UK VAT.
Zero Rated Goods Shipped to UK - Seller Responsible for VAT
Sales which have been delivered to customers located in the UK, where the product was zero rated for UK VAT.
Sales shipped to UK - Marketplace Responsible for VAT
Sales which have been delivered to customers located in the UK, where Amazon is responsible for collecting and remitting the VAT to HMRC.
Sales shipped outside UK - dispatched from GB
Sales which have been delivered to customers located outside the UK which have been dispatched from inventory held in GB.
Sales shipped outside UK - dispatched from outside GB
Sales which have been delivered to customers located outside the UK which have been dispatched from inventory held outside GB.
Where does Link My Books get this information from?
Link My Books uses the VAT Transaction Reports and the VAT Calculation Reports from Amazon to assign every sale and refund transaction to the correct group, as outlined above.
How do I know which tax rates to select?
Now you know how we group sales revenue into taxable jurisdictions but how do you know which tax rates to apply to each group?
When you connect a European Amazon Seller Account to Link My Books the first thing we do is take you through a guided setup wizard. We'll pre-fill some default tax rates, but if you're unsure you should check with your accountant or tax advisor.
💡Good to know
You can always book in for a video meeting with our in-house accountant team to discuss your setup. Book a meeting here
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].