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.
Link My Books exists to make accounting for your Amazon (and other e-commerce channels) sales, refunds, fees easy and accurate.
That's why as part of our quick and easy setup wizard, we'll provide you with some default accounts and tax rates to confirm.
This means that you can be confident your bookkeeping is clean and accurate. Trust me, your accountant will thanks you for it.
Link My Books default accounts for Amazon Europe accounts
Amazon has hundreds of different transaction types, so to keep things simple we group them into 10 top level categories:
Amazon Sales
Amazon Refunds
Amazon FBA Inventory Reimbursements
Amazon Seller Fees
Amazon FBA Fees
Amazon Storage Fees
Amazon Advertising Costs
Amazon Sales Tax (all regions except Amazon Europe)
Amazon Loans
Amazon Reserved Balances
If you accept our default accounts during setup we'll create one account for each of these different categories and add them to your existing chart of accounts in Xero or QuickBooks.
Here are our default accounts:
Account Code & Name | Account Type |
LMB1: Amazon Sales | Revenue |
LMB10: Amazon Refunds | Revenue |
LMB2: Amazon FBA Inventory Reimbursements | Other income |
LMB3: Amazon Seller Fees | Expenses |
LMB4: Amazon FBA Fees | Expenses |
LMB5: Amazon Storage Fees | Expenses |
LMB6: Amazon Advertising Costs | Expenses |
LMB7: Amazon Sales Tax | Current Liability |
LMB8: Amazon Loans | Current Liability |
LMB9: Amazon Reserved Balances | Current Asset |
💡Good to know
You can, of course, choose any accounts you like during setup. Plus you can even dive deeper into the sub-categories contained within these top level categories. You can learn more about fine tuning your account mappings in this help article.
Link My Books default tax rates for Amazon Europe accounts
For non VAT registered businesses established in the UK, in reality there are no tax rates to apply since you don't need to account for VAT.
Here are our default tax rates for sales revenue for non VAT registered UK businesses:
Transaction Tax Category | Tax Rate |
Amazon Sales | No VAT |
Here are our default tax rates for fees & other transactions for non VAT registered UK businesses:
Transaction Tax Category | Tax Rate |
Amazon FBA Reimbursements | No VAT |
Amazon Fees | No VAT |
Amazon Sales Tax | No VAT |
Amazon Loans | No VAT |
Amazon Reserved Balances | No VAT |
💡Good to know
Again, you can change these tax rates to suit your business if you wish to do so - they are just defaults. You should only change tax rates on the Accounts & Taxes Wizard and not on the Accounts & Tax Mappings page.
What if I register for VAT later?
If you hit £85,000 in turnover and register for VAT then all you need to do is come back in to Link My Books and update your settings by completing the Accounts & Taxes wizard again.
It's a good idea to send all the settlements to Xero or QuickBooks for the time period you were not VAT registered first, then update your settings and continue sending the settlements from that date onwards.
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].