Link My Books includes Shipping Label purchases within the settlements received via Amazon.
We categorise all Shipping Labels purchased from Amazon within Amazon FBA Fees, and they will be shown in your settlements with a transaction description of ‘Shipping Label Purchase’ or ‘Shipping Label Purchase for return’.
Amazon does not provide us with the VAT rate used for each Shipping Label purchase via their API, and since there are multiple carriers, not all of whom charge VAT, it is not possible for Link My Books to determine which shipping label costs include VAT and which do not.
The default tax rate for Amazon FBA Fees is usually Reverse Charged VAT, you can check the tax rate being applied to your FBA Fees category on the
Account & Tax Mappings page in Link My Books:
We therefore suggest that you use the VAT invoices for shipping labels from Amazon to make an adjustment on a monthly or quarterly basis, via a journal. These can be located on Amazon Seller Central in the Tax Document Library:
Reports > Tax Document Library > Seller Fee Invoices
Once you have downloaded the Shipping Label VAT invoices from Amazon you can then use the figures contained in them to make an adjustment in Xero or QuickBooks.
In the example below we assume that the amount shown on the Shipping Label invoice from Amazon was £120 including 20% VAT.
In Xero the journal would look something like this:
In QuickBooks Online the journal would look something like this:
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