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Handle GST and VAT for eBay orders and listings

Dev Chidipi
Updated

eBay prices include GST or VAT, but NetSuite calculates tax with its own tax engine and adds it to the order total. If you import eBay orders without adjusting for this, the tax is counted twice and order totals don't match. This article explains the eBay - NetSuite integration app settings that deduct GST or VAT from imported orders and add it to the prices you send to eBay, how to apply it to shipping costs, and how to sync EU VAT details that eBay collects.

How eBay handles GST and VAT

On eBay, all listing prices include GST or VAT where it applies, and sellers can't add it to the final price after an item sells. eBay recommends that sellers include GST in the item's list price. For how NetSuite handles GST, see these NetSuite Help Center topics: section_n2064551 and section_N2063644.

GST and VAT settings

Setting Location Description
GST/VAT rate Settings > General > Tax The GST or VAT rate, as a percentage. For example, if VAT is 20 percent, enter 20. The integration app uses this rate to deduct tax from orders during the order sync and to add tax to item prices during the pricing and item syncs.
Deduct GST/VAT from order total Settings > Order > General Deducts GST or VAT from the order total before the order is added to NetSuite.
Add GST/VAT to item price Settings > Pricing and Settings > Product > General Adds GST or VAT to the item price before it's sent to eBay by the pricing flow or the product flow.

For example, with a GST/VAT rate of 20:

  • Order import: With Deduct GST/VAT from order total selected, an eBay order with a $100 item and $5 shipping, for a total of $105, is imported into NetSuite with an item price of $80, tax of $20, and shipping of $5.
  • Price export: With Add GST/VAT to item price selected, a NetSuite item price of $100 is sent to eBay as $120 by the NetSuite Item to eBay Item Add/Update or NetSuite Item Price to eBay Product Price Add/Update flow.

Apply GST or VAT to shipping costs

No setting applies GST or VAT to the shipping cost. To deduct it from the shipping cost of imported orders, change the shipping cost mapping.

  1. In the integration app, go to Flows > Order, and select Mapping for eBay Order to NetSuite Order Add.
  2. Open the settings for the shipping cost mapping.

  3. Set the data type to Float, set the mapping type to Multi-Field, and enter this expression:

    {{divide $.ShippingServiceSelected.ShippingServiceCost 1.2}}

  4. Save the mapping.

The expression divides the eBay shipping cost by 1.2, which removes GST or VAT included at a rate of 20 percent. For example, a shipping cost of $12 is imported as $10. Change the divisor to match your rate. For example, for 25 percent, use 1.25.

Sync EU VAT details for eBay orders

Since July 1, 2021, eBay collects VAT on some orders, such as goods sold to EU buyers by sellers outside the EU, and sends the VAT registration ID on the order in the eBayReference field. Sellers must give this ID to their shipping carriers so that the tax isn't paid twice. If the carrier doesn't have it, the buyer might have to pay VAT again on delivery.

eBay sends one of these IDs, depending on the order:

Scenario Name Value
EU imports IOSS eBay EU IOSS number
EU domestic orders OSS eBay DE VAT ID
UK imports IOSS eBay UK IOSS number
AU imports ABN eBay AU tax number
NZ imports IRD eBay NZ tax number
Norway imports VOEC eBay NO number

When eBay collects and remits the tax, select Exclude Tax if Marketplace Tax Collection applies under Settings > General > Tax, so that the tax details aren't brought into NetSuite.

To save the VAT registration ID on NetSuite orders:

  1. In NetSuite, create a custom transaction line field for the reference, such as eBay Tax Reference.
  2. In the integration app, go to Flows > Order, and select Mapping for eBay Order to NetSuite Order Add.
  3. Select eBay Order Import Adaptor.

  4. Map this expression to the custom field, under Items:

    {{#compare eBayCollectAndRemitTax "===" "true"}} {{TransactionArray.Transaction[*].eBayCollectAndRemitTaxes.eBayReference}} {{/compare}}

  5. Select Save & close.

Use eBay's IOSS number only for eBay transactions; eBay takes action against sellers who misuse it. Because the street address line ShippingAddress.Street2 contains the eBay reference number, don't use it to print address labels.

For more about eBay's EU VAT changes, see eBay EU VAT and IOSS.

Send VAT rates on eBay listings

VAT-registered sellers must include the VAT rate on every listing, along with the gross price, so that eBay shows EU buyers the correct VAT-inclusive price and doesn't collect VAT on a price that already includes it.

  1. In the integration app, go to Flows > Product, and select Mapping for NetSuite Item to eBay Item Add/Update.
  2. Select eBay Item Import Adaptor.
  3. Map the saved search column or custom field that holds the VAT rate, or a hard-coded rate, to VATDetails.VATPercent. For example, map a saved search column labeled VATPERCENT.
  4. Select Save & close.