A2X records tax collected by Amazon, Shopify, or Walmart, including marketplace facilitator tax. You may benefit from using tax apps such as Avalara, Quaderno, Taxify or Taxjar to verify how much your client is required to remit.

How to categorize the taxes collected for your financial reports

US, Canada or international sellers accounting for sales and taxes outside of their main registered country

For most ecommerce sellers using A2X, the sales tax collected will be mapped to a sales tax liability account on your balance sheet.

From there, download a report from the ecommerce platform to verify the jurisdictions the tax was collected from, or you may benefit from using tax apps such as Avalara, Quaderno, Taxify or Taxjar to verify how much your client is required to remit.

If your client did not enable their sales tax settings on their sales platform and did not collect taxes, A2X will not post any taxes collected into QuickBooks Online or Xero. The tax apps will connect to your client's various sales channels and generate a report confirming the taxes due, regardless of the amounts collected.

For Sales Tax in USA and Canada:
A2X records tax collected by Amazon, Shopify or Walmart, including marketplace facilitator tax. For most ecommerce sellers using A2X, the sale tax collected will be mapped to a sales tax liability account on your balance sheet.

For VAT in UK, Europe, or GST in Australia, New Zealand or Singapore:
You have the option to categorize the taxes collected as a sales tax liability account, or to categorize the taxes collected as a tax-inclusive transaction, allowing your accounting system to reallocate the sales and VAT or GST to the appropriate categories in Xero or QuickBooks Online's tax reports.

Step 1: enable the country settings by going to A2X > Settings > VAT

This setting allows A2X to split the data by country the orders shipped to. Then map the tax transactions according to your financial reporting needs.

Follow the video tutorial for more information

Australia or New Zealand GST Mapping:

Shopify Mapping VIDEO, TEXT

UK or EU VAT Mapping:

A2X for Amazon and UK VAT

A2X for Shopify and UK VAT

A2X for eBay and UK VAT

If you have any questions reach out to the support team for more information.

Related articles:

Did this answer your question?