Disclaimer: you should get tax advice from your accountant or tax adviser, these instructions are for technical configuration of A2X.
eBay does not have any specific VAT transaction line items in your payouts because eBay does not track VAT on seller sales. eBay sellers manage their own VAT and can use A2X to account for it properly using the techniques in this article.
There are 2 techniques that are useful for eBay sellers in A2X for handling VAT.
- Grouping by Country - this allows sellers to apply tax rates to corresponding countries. For example a UK seller may apply a 20% rate for sales to the UK, and a different tax rate for sales to other EU countries or to countries outside the EU. Note: for complex VAT requirements users can request access to the advanced VAT settings - if you need specific VAT rates for multiple VAT registrations, please contact A2X support to enable this option.
- Grouping by Product Type - this allows sellers to group sales of products that have different tax rates together. For example a UK based seller may have VAT on some items they sell, and no VAT on other items.
1. Using Group by country in A2X for eBay
To enable this option use the group sales by country setting - Settings->Invoices
When enabled, this setting will split the sales and other transaction in your eBay payouts by the country the sale was shipped to. So you will see transactions like this in your payouts and they can be mapped to the appropriate accounts and tax rates.
For more advanced VAT requirements A2X has an optional VAT setting (request this to be enabled if you have advanced VAT requirements). This option is suitable for sellers who may have multiple VAT registration across the EU and need to track sales with different VAT rates.
2. Using Product Types in A2X for eBay
If you have specific products or sets of products that require special tax treatment, for example reduced rate or zero-rated products then you can use product types to group those product sales together for special VAT handling. You can read more about product types and how to configure them.
Here’s an example of using product types to track zero-rated products. First you would define the product type, in this case we're using SKU patterns, but you can also list the SKUs one-by-one for each product type group:
The transactions for those products would be grouped together and can have special tax rates applied.