FBA bookkeeping on Xero (or any other accounting software)
I do my own bookkeeping on Xero even though I don’t really know what I’m doing and today having a mild panic because I feel like I’ve been paying way too much VAT over the past year. I’m VAT registered and I sell FBA only. I notice a lot of people recommend the A2X plugin because it makes things so much easier. However, this worries me, because the way I do the books is so simple I don’t know why anyone would need A2X. It makes me feel I must be doing it wrong.
I don’t bother downloading spreadsheets or reports. I just use the payment summary tab every fortnight and reconcile this with the bank statement line in Xero. Can someone check the way I’ve been doing it and tell me why it’s wrong?
Dummy example: https://imgur.com/a/IwO1zBN
14 replies
Seller_z6B2L9xab6HlP
- What if you sell to someone outside the EU? You don’t (usually) need to pay VAT on that.
- What if your products are in different VAT categories?
- If you’re using FBA are you handling the difference between Promo Rebates and Shipping Chargeback correctly?
- Are you reverse charging the Amazon invoices correctly?
Seller_IZMia0ASJ6cAm
When Amazon pays you for a “FBA Inventory Reimbursement” there is no vat to pay on the amount. Not sure where that shows on the Amazon statement.
We use Link my Books for bridging Amazon to Xero, they do a 2 week free trial i think. You could use the free trial and check your system against what Link my books works the vat out as.
Seller_IZMia0ASJ6cAm
Dont think you should.
Amazon statements can cross over from one vat period to the next. Link my books splits the statements by the months so the vat is correct for each vat period.
Seller_cDXOuXZ6z57qr
@anon17820747 I would recommend Link My Books too as they are UK based and their support is amazing.
We were with A2X but switched to Link My Books when we went PAN EU. We now use them and VAT Services on Amazon to handle the EU VAT filings, the combination of the two works perfectly.
They actually wrote an article recently on their help page about what figures you need as an Amazon seller for the UK VAT return.
