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 and GST 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
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 (only for US sales tax collected and withheld)
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
Here are our default tax rates for sales revenue for Australian businesses:
Transaction Tax Category | Tax Rate |
Amazon Sales Shipped to Australia | GST on Income |
Amazon Sales Shipped outside Australia | GST Free Income |
Here are our default tax rates for fees & other transactions for Australian businesses:
Transaction Tax Category | Tax Rate |
Amazon FBA Reimbursements | BAS Excluded |
Amazon Fees | GST on Expenses |
Amazon Sales Tax | BAS Excluded |
Amazon Loans | BAS Excluded |
Amazon Reserved Balances | BAS Excluded |
💡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.
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].