Taxes are represented on the revenue side of the Breakdown Chart and are subtracted as a cost. It is a pass-through item we subtract and is not reflected in the overall profit. All margin calculations disregard sales tax and are based on net sales.
Note that Sellics receives only partial tax information for orders in the US marketplace; specifically we receive information about the marketplace facilitator tax collected and remitted by Amazon for states in which the marketplace facilitator legislation applies. Since it is not relevant to the seller's bottom line, Sellics subtracts it before calculating profit and margins. All margin calculations are based on net sales (i.e. excluding Sales Tax).
Using the Amazon VAT Calculation Service (VCS)
If you are enrolled in the Amazon VAT Calculation Service (VCS), Amazon will automatically calculate the appropriate VAT rate that is applicable for each individual order and all VAT data shown in Profit will come directly from Amazon. This means you do not need to edit your VAT rates in Sellics.
Calculating VAT for Sellers not enrolled in the Amazon VAT Calculation Service (VCS)
If you are not enrolled in the Amazon VAT Calculation Service (VCS), Sellics calculates your VAT based on the rates defined in Sellics only for B2C orders. This will artificially shrink the gross revenue of B2B orders, however the overall profit calculation will remain correct.
For marketplaces in the EU region (DE, ES, FR, IT, UK, IN) as well as the MX marketplace, we apply the following logic:
- If an order has taxes in its financial events, we apply those taxes instead of applying the user VAT rate.
- If a B2C order has no taxes in its financial events, we apply the user VAT rate.
- If a B2B order has no taxes in its financial events, we do not apply the user VAT rate.