1. Assisted Setup

Choose this option if you want A2X to complete your setup for you. A2X will create a default chart of accounts in your accounting system and use default tax rates based on your main region and tax registrations.

Example 1: US tax registered users

For users who are registered in the US, or any country with complex tax rules and rates at the state, city, or province levels, A2X will create a set of default Chart of Accounts specific for Amazon accounting in your Xero, QuickBooks Online to Sage, and categorize all taxes collected by Amazon as a sales tax liability.

Amazon will collect and remit marketplace facilitator taxes for most US states and several Canadian provinces which will net to zero in the accounting system.

Example 2: UK VAT registered users

If you’re using Xero or QuickBooks Online to file your MTD VAT return, A2X will create a default Chart of Accounts specific for Amazon accounting in your Xero, QuickBooks Online, or Sage, and apply VAT rates based on whether the transactions shipped to a UK or Non-UK jurisdiction.

All transactions shipped to the UK will have a 20% VAT tax rate applied, and as a default, all other transactions will use a zero-rated tax rate and separate the transactions for your VAT return. All expenses will have a 20% reverse charge as the default expense tax rate applied, with the exception of Amazon.co.uk. marketplace advertising fees, which will have the 20% Standard expense tax rate as the default.

This default mapping will include the Amazon sales and taxes transactions in your Xero, QuickBooks Online, or Sage tax module. For more information reference VAT Mapping for UK VAT Registered users Amazon and Shopify.

Example 3: UK VAT registered users also registered in additional countries

If you’re using Xero or QuickBooks Online to file your MTD VAT return, A2X will create a default Chart of Accounts specific for Amazon accounting in your Xero, QuickBooks Online or Sage and apply VAT rates based on whether the transactions shipped to the UK or Non-UK jurisdiction.

For Amazon, all taxable transactions with the UK country code will have a 20% VAT tax rate applied, and as a default, all other transactions will use a zero-rated tax rate and separate the transactions for your VAT return.

For all other sales channels, all taxable transactions with the UK as the shipped-to country will have a 20% VAT tax rate applied, and as a default, all other transactions will use a zero-rated tax rate and separate the transactions for your VAT return.

All expenses will have a 20% reverse charge as the default expense tax rate applied, with the exception of Amazon.co.uk. marketplace advertising fees, which will have the 20% Standard expense tax rate as the default.

Users who need to create additional nominal codes in Xero, QuickBooks Online, or Sage to categorize the transactions separated in the financial reports can take advantage of the advanced rules and mapping options available at the registered country levels. Click HERE for more information on the advanced auto-mapping rules enabled.

2. Custom Setup:

If none of the above situations apply to you or if you’d prefer to map all of your accounts yourself, then skip the assisted setup and default settings and customize your A2X settings according to your preference and financial reporting needs.

For an overview of how to use the mapping page, visit A2X Mapping Page Tips and Tricks.

Pro Tip: You can get started with the assisted setup to see how A2X works, then refine the accounts and taxes mapping as needed before upgrading to a paid subscription