Handling GST and VAT during Order Import and Pricing Export

Dev Chidipi

Updated February 01, 2021 20:41

Know GST and its impact
Goods and services tax, often known as GST, is a broad-based tax applicable on most goods, services and other items sold. While the item prices on eBay are inclusive of GST, NetSuite does not function the same way. Once the order is imported into NetSuite, it calculates the GST using its own tax engine and adds it to the order total. This results in double taxation of the order for the GST component and causes variance in the order totals.

From a seller's perspective, eBay recommends sellers to include GST in the item list price itself when applicable. The seller cannot add GST to the final value of an order is placed for an item. From a buyer's perspective, all listing prices on eBay are GST inclusive. Sellers are not allowed to add GST to the final sale price after an item has sold.

Use the following information available on NetSuite Help Center to know more about GST usage in NetSuite:

Handle GST using the Integration App
The GST/VAT rate field in the General Section, allows you to specify the GST/VAT value to be used for deducting tax from the order during order sync and adding tax to the item price during pricing and item sync.

This field accepts numeric values that are used as a percentage of tax you want to apply for an item or order. For example, if the GST is 20 percent, specify the value as 20.

The Integration App also allows you to control whether or not you wish to use this feature for the following flows:

Order Import: The Deduct GST/VAT from order total checkbox in the General tab of Advanced Settings of the Order section allows you to control if GST/VAT should be deducted from the order total before it is added to NetSuite.

Assume the following setup:
- GST/VAT rate: 20 (Percent)
- Deduct GST/VAT from order total: Enabled
  Order Information in eBay:
- Item Price: $100
- Shipping and Handling Cost: $5
- Order Total: $105

When the order import and the order information is imported into NetSuite, the Integration App deducts 20 % GST/ VAT from the item price and updates the item price in NetSuite as $80, Tax applicable as $20, and Shipping Cost as $5.

Pricing Export: The Add GST/VAT to item price checkbox in Advanced Settings of the Pricing and Product section allows you to control if GST/VAT should be added to the item price before it is added to eBay.

Assume the following setup:
- GST/VAT rate: 20 (Percent)
- Add GST/VAT to item price: Enabled
- Item Price in NetSuite: $100

When you run either of the NetSuite Item to eBay Item Add/Update or NetSuite Item Price to eBay Product Price Add/Update flow, the item price is imported into eBay and the Integration App adds 20 % GST/ VAT to the item price in NetSuite and updates the item price in eBay as $120.