Amazon Sales and VAT in UK and VAT Registered Countries

JoF · ‎October 20, 2020

My client sells on Amazon and I'm looking for help on how to post Amazon sales and VAT in QuickBooks Online.

They are registered for VAT in Germany, France, Italy and Poland.

Amazon payout every fortnight and we receive five payments for UK, DE, FR, IT & ES sales. The payout gives total sales less fees. There is no VAT breakdown. Also the UK Sales doesn't give a breakdown of sales shipped outside the UK.

I believe the only report that gives this amount of detail is the monthly VAT report.

Obviously the fortnightly report can cross over between two months, therefore it's not easy to match these reports to the monthly VAT report.

I would like to understand how I post the sales and VAT by country and match these to the payouts.

At the moment I am creating five sales invoices every fortnight to match the payouts. UK sales at 20% S and DE, FR, IT and ES at 0% Z. I post the fees at a negative sales figure with NO VAT. I know this is wrong but I'm trying to understand how to do it correct.

When we pay the VAT in the countries we are registered for VAT, I put this payment to an expense account (ie. France VAT). However, shouldn't this come off the sales figures, as a cost of sale?

I hope this makes sense and I'm sure there must be many others who have this Amazon nightmare!

TIA

Jovychris_A · ‎October 20, 2020

Hello there, @JoF.

I know this situation is quite complex to post Amazon sales and VAT because it only downloads the one/net amount in QuickBooks. Rest assured, I'm here to share some insights on how you can enter the taxes and other transaction details in QuickBooks. This way, you can get more reliable VAT reports.

You can download a settlement report from the Amazon sales website as your basis to see the transaction breakdown (that includes the sales, taxes, transfer, and other expenses) like payouts and match it with the deposits in QuickBooks bank feeds.

Once you get the transaction breakdown, you can then enter these transactions (like taxes, refunds, chargebacks, reserves) by using a sales receipt or create a journal entry with its corresponding date to input the details. You can also use the Apps menu in QuickBooks Online to search for an application that can integrate with Amazon sales and check its functionality or key benefits that fits your needs.

For additional information, I've included some helpful articles that you can check the modified boxes for each VAT codes work in QuickBooks Online:

To ensure your books are accurate with the accounts and understand how to post the sales and VAT by country, I encourage you to consult an accountant for meaningful advice or contact the HMRC to classify the correct taxes.

Please share with us and place a comment if you have additional questions. I'll check my notifications to help. Take care and more power!

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