In A2X, tax settings are different based on the marketplace, as well as the suggested tax and account mappings based on the country where you are tax registered. The purpose of this article is to explain how you can enable advanced settings in A2X to enable region-specific tax mapping.
Please note: These instructions are for the technical configuration of A2X and not tax advice. eCommerce platforms and tax rules are changing. Please check your client's tax settings in their e-commerce store settings.
Step 1: List your country registrations in the onboarding questionnaire
To launch the onboarding questionnaire, click on "setup accounts and taxes" in step 3 of your setup process.
Select your main registered country here. If your business is located in multiple countries, or if you are not sure, select the country of your accounting system and the financial reports you need to generate in Xero, QBO, or Sage.
Select YES if you are VAT or GST registered in UK, EU, AU, NZ or SG.
If you are registered in more than one country, select additional countries from the dropdown list, or select None and continue to the next page.
In most scenarios, you will have the option to select Assisted Setup, or Custom Setup next.
With assisted setup, A2X will map the accounts and taxes. It is assumed that you would prefer your accounting system's tax module to include VAT/GST transactions. The settings can be fine-tuned further once the initial setup has been completed. Click HERE for additional mapping tips.
You can also customize your setup instead, and choose from the simple or advanced option next. If you need to separate the sales and taxes data by tax jurisdiction, please select the advanced option.
With the custom setup options, A2X will not complete the mapping on your behalf. The next step for you will be to complete your accounts and taxes mapping. This is the last step of your setup before posting your first payout to the accounting system.
Otherwise, if you've selected assisted setup, then your setup is complete.
Step 2: Update your Accounts and Taxes page
In A2X, your tax transactions are separated from your sales transactions for Amazon and Shopify.
This tax separation allows you to map sales and taxes in two ways:
exclude sales and taxes transactions from your tax module
Recommended for US and Canadian sellers, and sellers registered in countries with more than one tax rate
Recommended for sellers who are not tax registered, or do not use the tax module in the accounting system
include sales and taxes transactions in your tax module
Recommended for sellers registered in countries with one tax rate per country (UK, EU, NZ, AU, etc)
The same mapping rules can be applied to users with zero-rated and mixed rated product groups
Recommended for sellers who are tax registered, and use the tax module in the accounting system
Click here to learn more about how to map accounts and taxes based on your country registrations, and how to include or exclude transactions from your tax module.
When VAT and GST registered sellers enable the advanced country feature or assisted setup, A2X is able to separate the data and group the transactions as follows: 1. Main Registered Country 2. Europe 3. Non-EU.
If you notice a mix of countries outside of the 3 main categories, please wait for the system to update and remove the additional entries. The update may take up to 24 hours.
UK or EU Sellers
For additional information regarding VAT settings in A2X for Amazon, Shopify, Etsy and Ebay sellers, reference this article HERE.
Australian, New Zealand or Singapore Sellers - GST Mapping