Withheld Tax Not Shown in API for IOSS Orders
Does anyone else have withheld tax discrepancy issues with Amazon order downloads for third party applications [Brightpearl, Linnworks] i.e using the API?
Since IOSS inception over a year ago, IOSS Amazon orders download with values that INCLUDE the withheld tax [in our case, Brightpearl]. As the withheld tax is never dispersed, it means we have to manually change each order to the excluding tax values.
Brightpearl claim: Amazon has a defect in the SP-API for orders where certain cross-border shipping scenarios have withheld tax shown in Amazon Seller Central, but this information isn’t sent via the order API. But I wonder how true this is having had this issue for 14 months…
0 replies
Seller_qZO3ZCjoBXEeL
It would seem to be a general issue of perspective. When orders are passed across, the value of the order is still the value including the IOSS tax withheld.
From the order perspective and the customer’s perspective what they have paid is what they have paid. How and by whom the tax was collected and remitted matters not.
Another way, these are not zero-rated export orders, they have had VAT charged, only that Amazon collect and remit it on your behalf.
I don’t use either platform myself but what actual problems is it causing you?
Seller_tRuvBEHDedp4q
Of course it would not be so bad if Amazon removed UK VAT amount - but they do not they actually remove the VAT amount equivalent to the country the item is being sent to.
So using my example above, selling something at £12 to Ireland (VAT rate 23%) means only £9.75 is disbursed on this order by Amazon - not the £10 expected
This is why I no longer do International on Amazon
Seller_tRuvBEHDedp4q
How Amazon have implemented IOSS is one of the main reasons I can no longer sell internationally on here (I still do successfully on ebay and my own website which has implemented IOSS properly)
For example, I sell chilldrens clothing which is zero rated in uk upto age 14
In Ireland it is only zero rated upto age 11
So when I sold a dressing gown (suitable for a 10-12 year old) to Ireland - Amazon removed 23% VAT on my disbursement. This is on something that attracted no UK VAT in the first place!!
