by Ariful | Mar 17, 2026 | US Updates
Understanding the 2026 IRS Updates: A Guide for International and US Businesses
Navigating the American tax landscape has always been a challenge for international sellers and domestic businesses alike. However, as we move through March 2026, the conversation around IRS reporting has reached a fever pitch. Significant shifts in reporting thresholds, new tax-advantaged accounts, and fresh deductions for workers have fundamentally changed how you need to manage your financial data.
Whether you are an e-commerce brand based in the UK selling to US customers or a fast-growing US-based SME, these updates under the One Big Beautiful Bill Act (OBBBA) and recent IRS administrative changes impact your bottom line. This guide breaks down exactly what has changed and how you can stay ahead of the curve.
The 1099 Threshold Revolution: Less Paperwork, More Clarity
For years, the $600 threshold for Form 1099-MISC and 1099-NEC was a source of significant administrative stress. Businesses were required to issue forms for even minor service contracts, leading to a mountain of paperwork and potential for error.
As of 2026, the IRS has substantially increased this threshold. The reporting requirement for 1099-MISC and 1099-NEC has jumped from $600 to $2,000. This change is designed to simplify tax compliance for millions of businesses.
What this means for you:
- Reduced Admin: You no longer need to issue 1099s for small-scale contractors or vendors paid under $2,000 annually.
- Focus on Core Growth: Less time spent on form generation means more time spent on your business expansion strategy.
- Ongoing Monitoring: Remember that these thresholds are set to adjust for inflation after 2026. Stay vigilant and ensure your record-keeping reflects these higher limits.
The 1099-K Reversal: A Sigh of Relief for Gig Workers and Small Sellers
Perhaps the most debated topic over the last few years was the proposed $600 threshold for 1099-K forms, the forms issued by third-party payment processors like PayPal, Venmo, and Amazon. After several delays, the IRS has officially reverted the Form 1099-K threshold to $20,000 and 200 transactions.
This is a massive win for casual sellers and micro-businesses. If you are an international seller testing the US market via digital platforms, you won’t be hit with unnecessary tax documentation unless you hit these more substantial volume markers. This allows for a “lean” entry into the US market without immediate, complex tax reporting burdens for low-volume sales.
New Deductions and the 2026 W-2: What Employers Need to Know
The One Big Beautiful Bill Act (OBBBA) introduced landmark changes for employees that directly affect how you, as an employer or business owner, report wages. Between 2025 and 2028, employees earning qualified tips or overtime can claim federal income tax deductions.
While these do not eliminate federal payroll taxes or withholding entirely, they provide significant relief to workers. To accommodate these changes, the 2026 Form W-2 features three critical new reporting codes that you must be aware of:
- Code TA: Used for “Trump Accounts”, a new tax-advantaged savings vehicle designed to help workers build wealth.
- Code TP: Total qualified tips income.
- Code TT: Total qualified overtime income.
Actionable Step: Ensure your payroll software or bookkeeping systems are updated to include these codes. Failure to report these correctly could lead to compliance issues and disgruntled employees who miss out on their entitled deductions.
Digital Assets Meet Real Estate: The New 1099-S Rules
The IRS is continuing its push into the digital age by integrating cryptocurrency and digital assets into traditional reporting. Starting in 2026, Form 1099-S, which is used to report real estate transactions, must now include reporting for digital assets used in these deals.
If your business is involved in property acquisition and you utilize digital assets as part of the transaction, you must track the fair market value at the time of the exchange. This is a critical step in mitigating financial risks or any organization involved in high-value asset transfers.
Impact on International Sellers and Global Entities
These new IRS rules have specific implications for cross-border operations:
- USA LLCs owned by Non-Residents: If you operate a US LLC as a foreign owner, the higher 1099 thresholds simplify your local reporting, but your underlying duty to report “effectively connected income” remains.
- VAT and Sales Tax Synergy: While these IRS rules focus on income and information reporting, don’t forget that US Sales Tax compliance is a separate, equally important track. The complexity of international compliance often mirrors the challenges we solve for cross-border businesses.
- Data-Driven Compliance: The shift toward digital asset reporting and new W-2 codes requires a robust data pipeline. Proper organization of your financial data ensures seamless end-to-end execution of filings.
Why Compliance Is No Longer “Optional”
With the IRS receiving increased funding for enforcement and the implementation of more sophisticated data-matching algorithms, the “wait and see” approach is dangerous. Inaccurate reporting of tips, overtime, or 1099-NEC payments can trigger automated flags.
Follow these steps to ensure you stay compliant:
- Audit your Vendor List: Identify who you pay more than $2,000 to and ensure you have their W-9 on file.
- Update Payroll Workflows: Incorporate the new W-2 codes (TA, TP, TT) immediately to avoid year-end chaos.
- Review Real Estate Holdings: If you are buying or selling property using modern payment methods, ensure your financial records include digital asset valuations.
- Talk to an Expert: Don’t guess. Work with a partner that understands both your home country’s tax system and the US market.
Supporting Your US Growth and Compliance
Managing US tax compliance requires more than just understanding the rules—it requires execution. Whether it’s bookkeeping, tax calculations, or filing your year-end accounts, professional support takes the administrative weight off your shoulders.
For businesses managing complex operations across multiple jurisdictions, the introduction of these new IRS rules adds a layer of complexity that requires professional handling. A comprehensive accounting and compliance service covering the UK, USA, Canada, and Australia ensures that no matter where your business grows, your tax standing remains secure and compliant.
by Ariful | Mar 17, 2026 | UK Updates
Update Your Payroll Systems Immediately
The most immediate change you’ll notice in 2026 is the reduction in the lowest federal tax bracket. Starting January 1, 2026, the federal tax rate on the first $58,523 of taxable income dropped to 14%. This is a decrease from 14.5% in 2025 and 15% in 2024.
While this is great news for your wallet, and your employees’ wallets, it creates an immediate administrative task. If your payroll software or manual calculations haven’t been updated to reflect this 14% rate, you are likely over-withholding tax.
Do this first: Audit your payroll settings. Ensure that the source deductions for your Canadian team members reflect the new 14% rate and the updated Basic Personal Amount of $16,452. Failing to do this causes unnecessary friction and requires corrections later in the year.
Maximize the New $16,452 Basic Personal Amount
The Basic Personal Amount (BPA) is the amount of income you can earn before you start paying any federal income tax. For 2026, the CRA has increased this to $16,452. In 2025, it sat at $16,129.
This increase is designed to help Canadians keep more of their earnings in the face of rising living costs. For business owners, this change means you need to re-evaluate your owner-manager remuneration strategies.
- Review your salary vs. dividend mix: With a lower entry-level tax rate and a higher BPA, the math on how you pay yourself may have shifted.
- Coordinate with your bookkeeper: Ensure your personal tax projections for the 2026 year are updated to reflect these savings.
Navigate the 2026 Inflation-Adjusted Brackets
The CRA adjusts tax brackets annually to prevent “bracket creep,” where inflation pushes you into a higher tax bracket even if your purchasing power hasn’t increased. For 2026, brackets have shifted upward by approximately 2%.
Understanding where you fall is critical for advanced financial forecasting. Here is the 2026 breakdown:
| 2026 Taxable Income Range |
2026 Federal Tax Rate |
| First $58,523 |
14% |
| $58,523 to $117,045 |
20.5% |
| $117,045 to $181,440 |
26% |
| $181,440 to $258,482 |
29% |
| Over $258,482 |
33% |
The Benefit: Because the thresholds for the 20.5%, 26%, and 29% brackets have all moved up, you can earn more income this year before hitting those higher percentages compared to 2025.
Manage the Capital Gains Tax Hike
This is the change that has caused the most conversation in boardrooms across Canada. As of January 1, 2026, the capital gains inclusion rate has officially increased for larger gains.
If you or your corporation realizes capital gains exceeding $250,000 in a year, the inclusion rate is now 2/3 (66.7%). Previously, it was 1/2 (50%). For individual taxpayers, the first $250,000 of gains still benefit from the 50% inclusion rate, but anything above that is taxed more heavily.
However, there is a silver lining for small business owners. The Lifetime Capital Gains Exemption (LCGE) has increased to $1.25 million for 2026. This applies to the sale of qualified small business corporation shares and qualified farm or fishing property.
Action Plan for Capital Gains:
- Identify pending asset sales: If you are planning to sell business assets or investments, calculate the potential tax hit using the 2/3 rate.
- Verify LCGE eligibility: Ensure your business structure still meets the “Qualified Small Business Corporation” criteria to utilize the $1.25 million exemption.
- Maintain impeccable records: To defend your cost basis and exemption claims, effective bookkeeping is non-negotiable.
Embrace the CRA’s Move Toward Auto-Filing
The CRA is attempting to make life easier for those with simpler tax situations. For the 2026 tax year, the CRA is expanding its “pre-filled return” initiative. If you are a lower-income earner or have a very straightforward tax profile, you may find that the CRA has already populated much of your return in the “My Account” portal.
While this is a step toward efficiency, it is essential to remain vigilant. Automated systems can miss specific deductions or credits you are entitled to. Even as the CRA moves toward automation, precision and compliance remain essential for every filing.
Why Compliance is Your Best Growth Strategy
In a changing regulatory environment, the biggest risk to your business isn’t the tax rate, it’s the penalty for non-compliance. Missing a deadline or miscalculating a capital gains inclusion can lead to audits and fines that far outweigh the tax itself.
Staying compliant requires a partnership approach. Focus on growing your brand, your sales, and your team while ensuring that back-office execution is handled with precision. Whether it is calculating VAT/GST, managing your bookkeeping, or handling your year-end Canadian corporate filings, proper tax compliance is built to handle the heavy lifting.
Don’t wait until the end of the year to fix a mistake made in March. Mitigating financial risks starts with proactive daily management.
Your 2026 CRA Quick-Start Checklist
Follow these steps to ensure you are on the right side of the 2026 changes:
- Audit Payroll: Confirm the 14% federal rate is applied to the first $58,523 of income.
- Update BPA: Set the Basic Personal Amount to $16,452 for all eligible employees.
- Assess Capital Gains: Review any planned sales of assets that might exceed the $250,000 threshold.
- Verify LCGE Status: Confirm your shares qualify for the new $1.25 million exemption.
- Review Tax Bracket Position: Calculate where your income falls within the updated 2026 brackets.
- Monitor CRA Auto-Filing: Check your “My Account” portal to ensure all pre-filled information is accurate.
by Ariful | Mar 17, 2026 | UK Updates
The Dividend Tax Hike: Extraction Just Got Costlier
If you are a director-shareholder, you likely take a small salary and the rest in dividends. For years, this has been the gold standard for tax efficiency. However, from April 2026, the cost of this strategy is rising.
HMRC has confirmed a 2 percentage point increase across all dividend tax bands. This change is designed to narrow the gap between earned income and investment income.
The New Rates at a Glance:
- Basic Rate: Increases from 8.75% to 10.75%.
- Higher Rate: Increases from 33.75% to 35.75%.
- Additional Rate: Increases from 39.35% to 41.35%.
- Dividend Allowance: Remains frozen at a meager £500.
What does this mean for you? If you are drawing £40,000 in dividends above the allowance, you are looking at an additional £800 tax bill purely from this rate hike. It is essential to review your remuneration strategy before the new tax year kicks in. For many, increasing the salary component up to the National Insurance threshold may now be more viable than it was previously.
Making Tax Digital (MTD): The £50,000 Threshold is Here
The era of manual spreadsheets and annual “shoebox” accounting is officially over. From 6 April 2026, Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) becomes mandatory for individuals with business or property income over £50,000.
This is a seismic shift in how you interact with HMRC. You will no longer just file one tax return at the end of the year. Instead, you (or your compliance partner) must:
- Keep digital records of all transactions using MTD-compatible software.
- Submit quarterly updates to HMRC, providing a digital summary of your income and expenses.
- Submit a Final Declaration at the end of the tax year.
Note for smaller entities: If your income is between £30,000 and £50,000, your deadline is April 2027. However, adopting digital processes now is highly recommended to avoid the last-minute rush.
Fiscal Drag: The Silent Tax Collector
While the government may highlight that “tax rates haven’t changed” for income tax, the reality is different. The Personal Allowance remains frozen at £12,570, and the Higher Rate threshold stays at £50,270.
In an inflationary environment where salaries and business profits are naturally rising, this “fiscal drag” pushes more of your income into higher tax brackets. If you are a foreign director of a UK company, understanding how these thresholds interact with your wider compliance picture is vital to avoid mistakes and late-filing stress.
E-commerce Impact: VAT and Cross-Border Compliance
For e-commerce clients, 2026 brings continued pressure on VAT compliance and cross-border logistics. If you are scaling into the UK market or using the UK as a hub for European sales, the integration of tax and accounting is no longer optional, it is a requirement for survival.
With the 2026 changes, the margin for error in your bookkeeping has disappeared. Higher dividend taxes mean you need to be more precise about what constitutes a business expense versus a personal draw. Furthermore, if you are utilizing Amazon Pan-European VAT services, ensuring your UK Limited Company accounts reflect your global movement of goods is a daily compliance task.
Strategic Checklist: Actions to Take Before April 2026
To stay ahead of these changes, follow this structured checklist:
- Review Dividend Timing: Consider declaring dividends before 6 April 2026 to take advantage of the current, lower rates.
- Audit Your Software: Ensure your accounting system is MTD-ready. If you are still using manual logs, it is time to migrate.
- Reassess Remuneration: Work with your compliance team to determine the most tax-efficient split between salary and dividends under the new 2026 rates.
- Check Income Thresholds: If your gross income (not profit) is approaching the £50,000 mark, prepare for quarterly reporting now.
- Register for Services Early: Avoid the bottleneck. As deadlines approach, HMRC systems and traditional accountants often become overwhelmed.
Frequently Asked Questions (FAQ)
What is the new dividend tax rate for 2026?
From 6 April 2026, the basic rate for dividend tax rises to 10.75%, the higher rate to 35.75%, and the additional rate to 41.35%. This is a 2% increase across all bands.
Does the £50,000 MTD threshold apply to profit or turnover?
The £50,000 threshold for Making Tax Digital (MTD) for Income Tax applies to your total gross income (turnover) before expenses. If your total business and property income exceeds this, you must comply with digital record-keeping and quarterly updates.
Can I still take a tax-free dividend in 2026?
Yes, but the allowance is very limited. The tax-free dividend allowance remains at £500 for the 2026/27 tax year. Any amount distributed above this will be taxed at the new, higher rates.
How does fiscal drag affect my UK Limited Company?
Because the personal allowance (£12,570) and higher rate threshold (£50,270) are frozen, any increase in your salary or dividends to keep up with inflation will likely result in a higher percentage of your income being taxed at the 40% or 35.75% (dividend) rates.
What should e-commerce sellers do to prepare for 2026?
E-commerce sellers should focus on automating their bookkeeping and digital record-keeping. With quarterly reporting through MTD, having a system that automatically syncs sales data from platforms like Amazon or Shopify into your digital records is essential to avoid penalties.
by Ariful | Mar 17, 2026 | E-Commerce
Why Reconciliation is Your Secret Weapon
Reconciliation is simply the process of ensuring that your internal records (Shopify) match your external records (your bank account). If these two don’t talk to each other correctly, your financial reports are essentially fiction.
For UK Limited Companies, getting this right is non-negotiable. HMRC doesn’t just want to see what landed in your bank; they want to see the gross sales before fees. If you only record the net amount that hits your bank, you are underreporting your turnover, which can lead to massive headaches during an audit.
Step 1: Understanding the “Payout” Gap
The biggest hurdle in Shopify bookkeeping is the “Payout.” Shopify doesn’t send you money for every individual order. Instead, they bundle several orders together, subtract their processing fees, subtract any refunds, and then send a lump sum to your bank.
To reconcile this, you need to look at three specific numbers for every payout:
- Gross Sales: The total amount your customers paid.
- Fees: What Shopify (or PayPal/Stripe) took for the transaction.
- Net Payout: The actual cash that landed in your business bank account.
If you don’t separate these, your Profit & Loss statement will be inaccurate, and you’ll likely miss out on claiming those transaction fees as a business expense.
Step 2: The Practical Workflow for UK Sellers
Don’t wait until the end of the quarter to do this. We recommend a weekly or bi-weekly routine. Here is how you should approach it:
- Export your Shopify Payout Reports: Go to Settings > Payments > View Payouts. This will give you the itemized breakdown of which orders are included in a specific bank deposit.
- Match the Date, not the Order: Shopify payouts usually lag by 2-3 days. Don’t look for the sale date; look for the payout date provided in your Shopify admin.
- Account for the “Ghost” Fees: Remember that if you use Shopify Payments, the fee is taken out before it hits you. If you use PayPal, the full amount might hit Shopify, but PayPal takes their cut separately. This is a common trap that leads to major e-commerce bookkeeping mistakes.
Step 3: Handling the VAT Maze (Shipping & Discounts)
This is where things get tricky for UK sellers. VAT isn’t just on the product; it’s on the total value of the supply.
VAT on Shipping
In the UK, if the item you are selling is standard-rated (20%), the shipping charge is also standard-rated. Many sellers accidentally categorize shipping as “exempt” or “zero-rated,” which is a quick way to get on HMRC’s bad side. When reconciling your payouts, ensure the VAT collected on shipping is accounted for in your VAT return.
The Discount Trap
If you offer a “Buy One Get One Free” or a 20% discount code, you only owe VAT on the actual amount received.
- Correct: Sale is £100, Discount is £20, customer pays £80. You pay VAT on £80.
- Incorrect: Recording the sale as £100 and the discount as an “expense.” This results in you overpaying VAT by £4.
Step 4: Dealing with Refunds and Adjustments
Refunds are a nightmare for manual bookkeeping. When a customer gets a refund, Shopify often deducts that amount from your future payouts.
This means your bank deposit might be significantly lower than your sales for that week. You must ensure your bookkeeping software reflects the refund as a reduction in sales and a “negative” VAT entry. If you don’t reconcile these adjustments, you end up paying tax on money you’ve already given back to the customer.
Step 5: Stop Doing It Manually (The Power of Automation)
If you are still using a spreadsheet to track Shopify sales, we need to have a serious talk. It is 2026, and manual entry is the fastest way to invite human error and HMRC penalties.
Using tools like Xero or QuickBooks integrated with Shopify is a start, but even then, the “out of the box” integrations often dump data in a way that is hard to reconcile. Many high-growth brands partner with professional compliance services to manage the bookkeeping, VAT calculations, and year-end filings.
Why UK Sellers Face Unique Challenges in 2026
HMRC has become increasingly digital. With the latest updates in 2026, there is a heavier focus on real-time data accuracy. If you are selling across borders: perhaps to the EU or the US: the complexity triples.
For instance, if you are holding stock in the EU to speed up delivery, you likely have VAT obligations in those specific countries. Reconciling payouts then involves multi-currency accounting and different VAT rates (like 19% in Germany vs. 21% in Spain).
A Simple Checklist for Your Next Reconciliation
To make your life easier, use this 5-point checklist every time you sit down to do your books:
- Does the Net Payout match the Bank Deposit exactly? (Down to the penny).
- Are the Shopify Fees recorded as an expense? (Don’t just record the net income).
- Is the VAT on Shipping correctly categorized? (Usually matches the product rate).
- Are Refunds accounted for in the correct period? (Timing is everything).
- Are your Sales Funnel metrics aligned? (Ensuring your performance indicators match your financial reality).
by Ariful | Mar 17, 2026 | E-Commerce
For many Amazon FBA sellers, the “Disbursement Initiated” email is the highlight of the week. It represents the hard work of sourcing, listing, and shipping finally hitting your bank account. However, that number you see in your bank statement is rarely the number you should be recording in your accounts.
If you are treating your Amazon payout as your total revenue, you are likely making a series of expensive mistakes. In the world of e-commerce, what you receive is the “net” amount, what’s left over after Amazon has taken its pound of flesh.
Mismanaging these payouts doesn’t just lead to messy books; it leads to overpaying tax, underestimating your margins, and potential trouble with authorities like HMRC or the IRS. As your dedicated amazon seller accountant uk, we see these pitfalls every day.
Here are the seven most common mistakes sellers make with Amazon payouts and, more importantly, how you can fix them to ensure your business remains compliant and profitable.
1. Confusing Net Payout with Gross Revenue
This is the single most common mistake in ecommerce bookkeeping. When Amazon deposits £5,000 into your account, that is not your “sales” figure. Your actual sales might have been £7,500, but Amazon deducted £2,500 in fees and advertising before sending you the rest.
If you only record the £5,000 as income, your records are inaccurate. This matters because tax authorities require you to report your gross turnover. Furthermore, in the UK, the VAT registration threshold (currently £90,000) is based on gross turnover, not your net profit.
How to fix it:
Always record the gross sales amount and then record the Amazon fees as a separate expense. This gives you a clear view of your actual business size and ensures you are tracking toward the VAT threshold correctly. Understanding VAT sales vs non-VAT sales is essential for getting this right.
2. Ignoring the Complexity of Amazon Fees
Amazon doesn’t just charge one fee. Your payout is hit by referral fees, FBA fulfillment fees, storage fees (which spike in Q4), and often “Inbound Placement Fees.”
If you don’t break these down, you cannot see where your money is going. Many sellers are shocked to find that a product they thought was profitable is actually losing money once the storage and return fees are factored in.
How to fix it:
Download your Settlement Reports regularly. Don’t just look at the total; look at the line items. If you see high storage fees, it’s a signal to liquidate slow-moving stock. We help our clients by taking this raw data and turning it into structured financial reports, so you always know your true margins.
3. Miscalculating VAT on Amazon Fees
For UK and EU sellers, VAT on Amazon fees is a frequent source of confusion. Amazon typically bills its fees from a different jurisdiction (like Amazon Lux for EU/UK sellers). Depending on your VAT status and whether you have provided your VAT number to Amazon, they may or may not charge you VAT on these fees.
If you are VAT registered, you usually account for this via the “reverse charge” mechanism. If you aren’t VAT registered, that VAT is a cost to your business that you cannot claim back.
How to fix it:
Ensure your VAT number is uploaded to Seller Central correctly. Check your “Amazon Tax Document Library” every month to download the specific VAT invoices for fees. These are separate from your payout reports but are vital for your ecommerce bookkeeping.
4. Failing to Reconcile Payouts with Bank Statements
A payout initiated on the 28th of the month might not hit your bank until the 2nd of the next month. If you are trying to match your bank statement to your Amazon sales for a specific month, the numbers will never align.
This “timing difference” is the bane of many sellers’ existence. Without proper reconciliation, you end up with “phantom” money or missing transactions that make your year-end accounting a nightmare.
How to fix it:
Use a settlement-based approach. Match your bank deposit to the specific Amazon Settlement ID. This ensures that every penny is accounted for, regardless of which month it hits your bank. If this sounds overwhelming, when should you hire an accountant becomes a very relevant question for your growing business.
5. Overlooking Refunds and “Invisible” Deductions
When a customer returns an item, Amazon deducts the refund from your next payout. They also charge a “Refund Administration Fee.”
Sellers often forget to account for these deductions, leading them to believe they made more sales than they actually kept. Additionally, there are “reimbursements” (when Amazon loses your stock) which are actually income and should be recorded differently than a standard sale.
How to fix it:
Categorize every transaction type within your settlement report. Ensure refunds are deducted from your gross sales and reimbursements are added back correctly. Tracking these “invisible” numbers is key to maintaining a healthy cash flow.
6. Getting Cross-Border VAT and Sales Tax Wrong
If you are selling in the USA, Canada, or across the EU, your payouts become significantly more complex. In the US, Amazon may collect and remit Sales Tax for you in many states, but you still have a filing obligation in others.
In the EU, selling across borders involves navigating the One-Stop Shop (OSS) or local VAT registrations. For instance, if you are storing goods in Sweden, you must understand VAT registration in Sweden and how those sales impact your payouts.
How to fix it:
Don’t guess. Each jurisdiction has different rules. At Sterlinx Global, we provide a full compliance suite for the UK, USA, Canada, and Australia, and handle VAT registrations and filings across the EU. We take your raw transaction data and ensure you are compliant in every market you touch.
7. Relying on Manual Data Entry (The Spreadsheet of Doom)
When you start, a spreadsheet is fine. When you scale, a spreadsheet is a liability. Manually typing in numbers from Amazon reports leads to typos, missed rows, and hundreds of hours of wasted time.
Manual entry also makes it nearly impossible to keep up with UK tax tips to run your business accounting because you are too busy fighting with cells and formulas to actually look at the tax-saving opportunities.
How to fix it:
Automate. Use software that bridges the gap between Amazon and your accounting platform, or better yet, partner with a compliance suite that handles the data integration for you. At Sterlinx Global, our model is simple: you provide the data, and we complete the compliance and bookkeeping on a daily basis.
Summary Checklist for Amazon Payout Success
To keep your business on the right side of the law and your profits high, follow this quick checklist:
- Gross vs. Net: Always record the total sales before Amazon takes their fees.
- Download Invoices: Get your monthly VAT invoices for fees from the Tax Document Library.
- Check Categories: Ensure your products are in the right categories so you aren’t being overcharged on referral fees.
- Reconcile Monthly: Match each bank deposit to its corresponding Settlement ID.
- Track Refunds: Record both the customer refund and the administration fee separately.
- Understand Your Jurisdictions: Know the VAT and Sales Tax rules for each country you sell in.
- Automate Your Data: Stop manually entering numbers and invest in accounting software or a compliance partner.
