VAT support for the Amazon EU marketplace

The Amazon EU marketplace uses VAT that is inclusive in the item and shipping prices. In NetSuite, taxes are exclusive of the item price and are added separately.

During order sync from Amazon into NetSuite, if there is a difference between the tax values calculated by NetSuite and the values sent from Amazon, the difference is stored in the ETAIL TAX TOTAL VARIANCE custom field on the sales order. If there is a difference in the order totals of NetSuite and Amazon, the difference value is stored in the ETAIL ORDER TOTAL VARIANCE custom field on the sales order. To accurately calculate applicable VAT taxes in both systems, configure your integration app settings appropriately.

Set up your GST/VAT

You can set up your GST/VAT for all the applicable integration flows at the General section > Tax tab. Select the Enable GST/VAT for your marketplace box if you want to apply GST/VAT to the marketplace. After you select the Enable GST/VAT for your marketplace box, the below two settings are visible:

• Apply GST/VAT rate reported by Amazon: Select this option if Amazon explicitly provides tax details on the order. This amount will be reported on the NetSuite sales order, invoice, and settlement transactions (such as payments and credit memo). Along with the GST/VAT amount, Amazon also provides the shipping tax and gift wrap tax. The order flow also syncs the values precisely. 
  
  Note: To check if Amazon is providing tax details, verify your order in the Amazon MWS Scratchpad. If Amazon does not provide order tax details, it is recommended that you uncheck the Apply GST/VAT rate reported by Amazon box and enter the tax rate in the GST/VAT rate to apply across all orders setting. 

• GST/VAT rate to apply across all orders: The GST/VAT rate you provide here is considered to calculate taxes on all orders placed in this marketplace. The same rate is used to calculate the shipping tax and gift wrap tax. The tax calculation logic is consistent in the settlement transactions. This will also add the tax to the item price during pricing and item sync if you enable the “Add GST/VAT to item price” setting.

If you want to apply the GST/VAT rate to item price, 

• In the Settings tab > Pricing section, check the Add GST/VAT to item price box. 
• In the Settings tab > Product section, check the Add GST/VAT to item price box.  Enable this checkbox to add GST/VAT to the item price before it is added to Amazon. GST/VAT will be added to the following price fields: 
  • standard_price,
  • sale_price,
  • quantity_price1,
  • quantity_price2,
  • quantity_price3,
  • quantity_price4,
  • quantity_price5,
  • list_price and
  • map_price

Note: If you want to apply the GST/VAT rate to item price, enter the GST/VAT rate in the Enter GST/VAT rate to apply across all orders field.