VAT in Europe - included on Revenue & Cost Side
In Europe, the customer pays the VAT on each order and the seller is responsible for collecting and paying the tax to the state at the end of the year.
Wondering why the tax % in the Overview's cost graph is too low, or you want to edit the tax rate? Check this article!
For Europe, India and Mexico:
All B2C Orders calculated with Tax Tate
If the seller uses Amazon's VAT calculation service (VCS), the tax information is taken from the order's report in the API.
If the seller is not using VCS, Sellics will use the tax rate that is shown in the Cost Manager.
B2B Orders mostly with VCS provided Tax
Basically all B2B sellers use Amazon's VAT calculation service. For such sellers' orders, Sellics uses the tax information provided by Amazon's API.
In some rare instances, some B2B orders come through from sellers not using the VCS. Here, Amazon's API has no tax information for the respective orders.
In this case Sellics assumes it is a tax free order and will not add the tax rate from the Cost Manager to the order's calculation.
US & Canada Marketplace Facilitator Tax
On the US and CA marketplaces, the sales tax shown in Sellics reflects the 'Marketplace Facilitator Tax' collected and remitted by Amazon.
Since it is not relevant to the seller's bottom line, Sellics subtracts it before calculating profit and margins. All margin calculations are based on net sales (i.e. excluding Sales Tax).
We will likely be removing the facilitator tax in the future to avoid confusion.