Amazon VAT Settings – Tradebox V2.0

How VAT on EU orders has changed

From 01/07/2021 online marketplaces (OMP) became responsible for calculating, collecting, and remitting VAT on most EU orders placed on their platforms. There are exceptions for B2B orders and in other circumstances.

All orders that qualify for VAT collection by Amazon  have a Tax Collection Model that equals  Marketplace Facilitator. In the order code returned by Amazon this looks like:

<TaxCollectionModel>MarketplaceFacilitator</TaxCollectionModel>

In the order code returned by Amazon, for orders that are identified with a Tax Collection Model that equals MarketplaceFacilitator, Amazon specify the total Item Price Value and the total Item Tax Value:

 

<ItemPrice>
<Amount>21.44</Amount>
</ItemPrice>

<ItemTax>
<Amount>2.55</Amount>
</ItemTax>

The same values are also provided for any shipping costs.

 

Amazon VAT Control

A new control has been added to the Options section of the VAT tab of each Amazon sales channel. This is called, “Where Amazon collects tax, use Amazon tax Values“.

 

 

This option is ticked by default. When this option is ticked, Tradebox will use Amazon’s tax calculation values for any orders that have a Tax Collection Model that equals  Marketplace Facilitator. The Amazon Tax figure will be removed from the Amazon Item Line figure and the net amount used by Tradebox as the Line Item Price. VAT will be set as Zero Rated:

 

ItemPrice (21.44) minus ItemTax (2.55) = Line Price = (18.89)