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US Sales Tax - How Link My Books handles this
US Sales Tax - How Link My Books handles this
Daniel Little avatar
Written by Daniel Little
Updated over a week ago

Although we are based in the UK, Link My Books is suitable for businesses from all over the world.

In fact we have thousands of Amazon and eBay sellers using Link My Books and some of those are from the US and Canada.

Most of our US customers will mark all transaction category tax rates in Link My Books as Tax Exempt since in there US there is no "VAT" or value added tax to account for.

Most US based sellers will either:

a) Not hold any Sales Tax permits and instead the Amazon will be collecting and remitting sales tax on their behalf. In this case marking all transaction category tax rates as Tax Exempt is usually what they would do.


b) Hold some Sales Tax permits of their own and be using Tax Jar or similar to remit their sales tax filings meaning again they would usually assign Tax Exempt tax rates to all transaction categories. They would then account for the payments of sales tax later on in their bookkeeping software once they make those payments.

Link My Books does separate out sales tax into a single sales tax account of your choice meaning that if you are a seller from option A then the account will always hold a nil balance since Amazon collect and then clawback the sales tax from customers to remit directly to each State.

If you are a seller from option B then this account will hold the balance of your sales tax owed. As you make sales tax payments to each State you can then account for them to this same sales tax account and it will reduce the balance down to nil as you do so.

Hopefully this helps explain but if you have any further questions please let us know.

Also if you connect up your account then we could make you a walk through video of how the sales tax is being accounted for in your specific account too.

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