How Do I Define A Product’s VAT Rate ?
Defining Member State level VAT Registration And VAT Standard Rates
- If all of your products are subjected to the Standard VAT Rate for a member state, setting up SellerLegend for VAT is easy:
- Go to Menu –> Settings –> Europe VAT
- However, If some of your products are subject to a Reduced VAT Rate, you will need to specify the reduced rate on a per-product basis:
- Go to Menu –> Products List
- Select the product of your choice,
- Click on the Actions button and choose Enter VAT Period
- In the VAT entry screen, click on the +Add New VAT period
- Enter the From-To dates when the reduced VAT rate was applicable for
- Click on Save
- Repeat for every product charging a different rate.
Does SellerLegend Consider The VAT on Fulfillment Fees?
- If you are selling in Europe and you are not VAT registered, Amazon will automatically add VAT to your fulfillment fees
- SellerLegend does not need to intervene in this situation
How Does VAT Impact My Profit Calculations?
- Once VAT has been enabled, from then onward, the calculated VAT element will show on the Orders screen
- While VAT is accounted for as Revenue by Amazon, VAT revenue is not yours to keep, as it needs to be remitted to the tax authorities
- The VAT will, therefore, be deducted from your profit per order figures
- The sum of all VAT amounts on all your orders will be shown per product in your Settlement Period details and will be deducted from your Amazon Payout (alongside COGS and Other Operating Expenses) which will, in turn, affect your Net Profit.
Are You Using Amazon’s VAT Calculation or VAT Invoicing Service?
- If you do, please do not use SellerLeged’s VAT calculation, as we will automatically retrieve Amazon’s calculated VAT instead
- Please note the VAT calculated by Amazon will appear under ‘Tax’ in SellerLegend screens rather than under ‘VAT’, however, the ‘Tax’ fields serve the same purpose